SAVE. SPEND. SUPPORT. Talk to your Kids about Money

Written by Nicole Bell, Chelsea State Bank

We know our children and grandchildren are listening to adult conversations because they often repeat what they hear. So why not include them in the conversation when it comes to money? Each family has their own financial goals. The key is to start including them in the conversations now and to make sure the conversations are age appropriate. If you’re still unsure where to start – check out these tips to begin your child’s education about financial wellness.

Use daily interactions as conversation starters. Teach them about the cost of their favorite restaurant meal, or the price tag on the latest gadget they just must have. If they ask you for something that is a want instead of a need, use this opportunity to share a recent experience where you had a similar decision to make. Stay clear of comments like “that’s too expensive,” or “we don’t have enough money.” Although both might be true, frame your response in a positive way, for example, “that is a great goal to save for,” or “how can we create a plan where you can save up money for that?”

Find ways your children can safely earn money at home. Do the dishes need to be washed? How about taking the trash to the road? Often, there are opportunities for children to earn a little extra money in exchange for completing a task. You can even ask them what they could help with - you might be surprised at their response.

The 3 S’s: Save, spend, support.

There are many philosophies around how much one should save, spend and support (donate). Find what works best for your family. Adjust as situations change. The important takeaway is to have the conversation over and over with your children.

Exhibit good financial behavior.

Children are not only listening, but they also learn by watching us every single day. It’s important to lead by example and celebrate the small wins with your family.

Take advantage of community resources.

Chelsea, Dexter, Grass Lake, Manchester, and Stockbridge offer a plethora of resources to community residents. Tap your local experts at your bank or meet with a financial planner to get more information about money, financial literacy and community connections.

Teaching children about financial wellness is a process that will look differently for each family, and that is okay. The most important thing to remember is that by bringing them into the conversation about money early, they will develop the tools they need that will have a lasting impact well into their future.