5 tips on teaching kids to save money

By: Andie Adams Email
By: Andie Adams Email

GRAND JUNCTION, Colo. (KKCO) -- When it comes to saving money, the earlier someone learns, the better.

A report from CreditCards.com shows that the average American household owed nearly $15,950 in credit card debt in 2012. While some of that debt can be good -- like borrowing for a home or college-- non-essential spending can get out of hand fast.

Teaching children about money isn't the most exciting lesson, but it's one of the most important.

April is "Teach Children to Save," so the First National Bank of the Rockies recommends five teachable moments you can take use to show your kids responsible spending:

  1. At the bank: When you go to the bank, don't just go through the ATM. Bring your children inside and show them how transactions work. Ask the manager to explain how the bank operates, how it generates interest, how you can generate interest, etc. Then show them how an ATM works.

  2. On payday: Take your children through your budget. Explain how you allocate a portion for housing, food and clothing, and then set aside some for college tuition and retirement.

  3. At the grocery store: Show your children how to compare prices (this can improve their math skills, too!). Explain how coupons work, as well as off-brand vs. brand name products.

  4. Paying bills: Sit your children down and explain how you can pay your bill, whether that's online, over the phone or by mail. Tell them about how each method takes money out of your account, and let them know about the penalties of late payments.

  5. Using credit cards: Discuss how credit cards give you loans that need to be repaid. Show them the statement that comes in the mail or email every month. Explain the difference between ATM, debit and credit cards.

For more tips, click the link below under related links.


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