Remembering those first few paychecks you received for a summer job, babysitting gigs, or an allowance from your parents brings back the nostalgia of simpler times. Fast-forward to today, and your kids are probably going through a very similar moment in time.
“Kids start learning about money at an early age and by the time they start earning money, it’s a great moment to talk about financially healthy habits that can last them into adulthood like saving, budgeting and making the most of what they earn,” said Tessa Eddy, Community Manager for Chase in Minneapolis.
Here are some tips to help them start their own financial health journey:
Let Them Earn Their Own Money: Allowances are a great opportunity for children to earn their own money for ‘jobs’ like watering plants, pet sitting, or assigned chores. To help manage the money they earn, you can open a bank account for kids that gives them access to their funds with your supervision and control. It’s like a ‘learners permit’ for money, allowing you to designate how much they can spend and where. Chase First Banking comes with their very own debit card so they can start learning about financial responsibility, giving them the opportunity to learn the fundamentals of saving, spending, and earning.
Discuss “Wants” vs. “Needs:” Teaching your kids the importance of saving for the unexpected is a valuable lesson. Talk to your kid about what they’d like to do with their money and help them create a list to show what could be considered a need and what is a want. To keep the conversation going, engage them in family discussions about planning for a trip to the grocery store, major purchases, or how to adjust the budget when gas and food prices go up.
Set Savings Goals: Having a goal in mind can make saving enjoyable. Motivate your kids by finding out what they want to save for and how they can achieve their goal. Use this as an opportunity to educate them on the importance of setting goals and creating a plan that can help achieve them.
Consider opening their first account: Many kids might opt for their piggy bank as a safe place to keep their money, but it’s important to teach your kids the benefits of having their money in a secure place. Opening a Chase First Banking account at an early age can be the first step to learning how to save and manage for the future. You can make it memorable by visiting your local bank branch and show them how to use their card responsibly.
Shop online together: Involve your children in these transactions by shopping with them. Ask them to help you find better deals and to add up totals in your cart before paying. After you’ve made your decision on what to purchase, help them understand that digital purchases still need to be paid with real money from their bank account.
Talk About Money: It’s important to start conversations about money at an early age – it’s never too early. Have open conversation about budgeting, discuss the importance of researching prices to make informed decisions before purchasing and keep the conversations going.
For more information on Chase’s products for kids and teens, visit your local Chase bank to speak with a Community Manager or visit https://www.chase.com/personal/financial-goals/parents.