Children are fast learners and can absorb an incredible amount of information. That’s why being a good example to them is so important. The same applies when it comes to money matters. Here are three ways to be a good example when it comes to finances.
Introducing your children to the idea of charity and giving back to others is an important lesson. If they consistently see examples of their parents donating time or money to good causes and people in need, they’ll be more likely to carry these lessons into their teenage and adult years. For instance: Before holidays and birthdays, have your child collect old toys or clothes that they don’t use anymore or have outgrown. Then, instead of throwing the items out, let your child be involved in the process of donating them to a local charity (as long as the items are in decent quality). Explain that they’ll go to children who need them and how important it is to help those in need.
Whenever possible, try to be transparent with your child about money without overwhelming them with the financial problems you could be experiencing, if any. Maybe your child doesn’t understand why their friend gets to travel or get things that they don’t (or vice versa). Explain that everyone has different priorities when it comes to their spending choices, and that your family is the same.
Be a Good Example of Budgeting
You can start teaching your child the importance of budgeting early in their life. While it probably won’t be helpful to sit down with your 5-year-old to create an excel sheet, you can use more visual methods. For example, you could make and use a savings chart for something like a family vacation. This will allow your child to see that you save for things you want, too. You can also let them tag along when you visit your financial institution to make transactions. This will let them see how the process works firsthand.
Allow your child to put what they've learned from you into action. One way to do this is by opening a youth account for them. A Cyprus Dollar Dog account is a great resource and is ideal for kids aged 12 and under. In honor of Credit Union Youth Month, we’ll give you $5 to get your child’s Dollar Dog account running when you open it in April.
Dream Certificates of Deposit (CDs) are also excellent savings tools. Open a Cyprus Dream CD during April for your child aged 18 and under, and we’ll match your initial deposit up to $25.
By completing one of the items above, you'll automatically be entered to win a family fun prize! To learn more about this offer, click here. Give us a call at 801.260.7600 or visit any Cyprus branch if you have questions.