The following is a sponsored advertorial on behalf of Access Credit Union.
Looking after your finances is a crucial life skill, so it’s a good idea for parents to introduce their children to the basics at an early age. If you can help your child develop good financial decision-making early on, the better prepared they will be for financial challenges later in life. Here are five ways parents can help their children financially prepare for the future:
1. Start young
It is never too early to start talking to your kids about money. Talking to your kids about money at an early age will help give them a foundational knowledge which you can build on as they grow up.
2. Start simple
A great place to start the conversation is to talk in simple terms of money – where money comes from and how money is earned. One of the first teaching techniques often revolves around the conversation of needs vs. wants. Explain that when you have money, a certain amount will go towards items that you need, and then a certain amount can go towards items that you want.
3. Make it fun
For younger kids, we suggest using visuals to engage with them in a fun way. Get two jars, have your child decorate the jars, and label them spending and saving. You can then talk to them about the difference between spending and saving. For technology-savvy kids or teenagers, there are mobile apps you can use to teach money management and budget techniques.
4. Teach ways to make money
One of the early ways to teach kids how to earn money is to give them an allowance, which is a great way to start teaching your kids how to manage money. You can choose an amount that you feel is reasonable based on your child’s age and decide whether it will be given based on chores being completed. You can also introduce other ways to earn money when they get older like babysitting, dog walking, or yard work for neighbours.
5. Open their first bank account
Financial education is a lifelong process that begins in earnest with a young person’s initial bank account. At Access Credit Union, we have accounts specifically tailored for youth. The Grow Chequing account can carry teenagers through to age 19 with the option to transition to a student account if they pursue post-secondary education. The Grow Savings account is a great starting point for saving money as it has no monthly fee, unlimited free withdrawals, and encourages saving by offering a higher rate of interest on the first $2,000 deposited.
With expert advice and a wide selection of products, you will be confident in reaching your goals with Access Credit Union. Visit accesscu.ca to become a member today.
