Talk to your kids about money ...
1) Help them distinguish between needs and wants. Print out pictures of different items and help them determine which ones are necessary purchases and which ones can wait by splitting them into two separate piles.
2) Share your experiences with money, whether good or bad, to help them understand the importance of saving. Communicate with them openly and answer any questions they have honestly.
3) Show them the value of different items. When you go out to a store to buy something, make it into a lesson. Let them see how much money you brought with you to spend at the super market. Add up the cost of your items and together, figure out how much change you’ll get back and discuss what you can do with that leftover money.
4) Give your child an allowance for things they do around the house and make them save a portion of it. Put the saved portion in a special place. After a few months, take it out and count how much money was saved. Decide if they are going to use it to buy something now or wait longer to save up for something better.
5) Be a good example by paying your bills on time and explaining to them what your expenses are and how you save for them. If your child sees their parent being financially responsible growing up, they are more likely to form good financial habits themselves.
6) Give them some financial independence by taking them to the bank and opening their own savings account. Here at Maspeth Federal Savings, we encourage children to learn the importance of saving and have a special account just for them. Call or stop in to any of our locations to find out more about our Young Savers Account and start saving today!