Teaching Children about Money

People form their impressions of money at an early age. Teaching children how to handle money responsibly at a young age can help develop good saving and spending habits that will last their whole lives. Here are a few tips to help parents:

• Be a role model: If your children see you use your credit card, they quickly learn that when they want something they can't afford, credit cards are the answer. Instead of using your credit card, start a "new camera fund" and let them see you saving for something you want.



• Needs and wants: Help your children know the difference. In order to teach them, you have to know the difference yourself. You want a new tool set. You need an oil change.



• Be a saver: Help your children set up a savings fund. It could be something as simple as a glass jar. And you don't have to limit it to just one - there could be a fund for something they want and another for a car or college.



• Be a sensible shopper: Show your kids how to be smart about buying - teach them to comparison shop, and look for a good deal.



• Be a giver: Encourage your children to give - whether it is to a favorite charity or a church. Teaching them to help those less fortunate helps them cultivate compassion and appreciate the value of what they have.



• Share about your finances: For older children, it pays to show them what your family earns and what it spends on bills. This offers a valuable reality check for children who often have unrealistic views of how much income and expenses exist in your household.



• Good debt, bad debt: It is one thing to go into debt to purchase a house or car; it is another to rack up high credit card bills. Youth need to learn about the importance of building and maintaining good credit.



• Money safety: It's important to talk to your children about making sure their personal financial information is safe. Make sure they're taking precautions when buying online, for example.



• Talk to a professional: Like it or not, sometimes children are more willing to hear advice that comes from outside the family. Take your children to meet with a financial advisor or use online educational tools to help them learn how to manage their finances wisely.

Tips for Financing a College Education.

To learn more about planning for your financial future, please call (775) 886-1468 or (800) 421-6674, extension 1468.