Here are some great ways to help them get on the right track.
Discuss wants vs. needs.
One of the most important values to teach a child is to know the difference between a want and a need.
- Needs are the basic things we must have to sustain a healthy life, like food, shelter, clothing, healthcare, and education.
- Wants are all the extras we don’t really need, but make life more enjoyable, like our favorite snacks, candy, designer sneakers, video games, and the latest technology.
Explain spend vs. save.
Use physical objects like a toy or special treat as an example to help explain these two terms. Show them that spending means taking away something, while saving means putting something aside. When children understand the difference, they can learn how to make decisions and apply this when they begin using money.
Give them a place to save.
A Youth Account is a fun, hands-on way for a child to learn about saving. Many financial institutions, like Jovia, place the parent/guardian as a joint account owner, so the young member can use the savings account while a parent/guardian monitors the account activity.
Teach them what it means to earn.
A great way to help children learn the value of money is to pay them for completing chores around the house or getting good grades. They will then connect the idea that they earn money when working hard.
Teaching children financial literacy can lay down the foundation for a bright financial future, and it’s never too early to begin! A Youth Account paired with a tool like Jova’s youth savings app, Curio, is a great place to start. Open a Youth Account here.