As the new school year begins, it’s a great time to introduce your children to the basics of money management. Starting early with discussions about money, budgeting, and planning can set your kids up for a financially secure future and help them avoid common pitfalls. Our independent financial planners have some valuable tips to help you guide these conversations with your children:
Build a Strong Foundation
Begin teaching financial concepts as early as elementary school. Simple lessons about setting goals and saving birthday money for a toy or game can lay the groundwork. Gradually introduce more complex topics like budgeting, credit, interest, and opportunity cost. Make these lessons engaging by involving them in everyday financial activities, such as grocery shopping, opening a bank account, and discussing long-term savings goals.
Provide Balanced Guidance
Initially, you’ll cover all of your child’s expenses, but as they start earning money from chores or part-time jobs, it’s time for them to begin budgeting for non-essential items. For larger purchases, like their first car, you can support them while teaching valuable financial planning skills. For example, you might match their savings or split the cost to demonstrate how financial planning and responsibility work in practice.
Lead by Example
Your financial habits will be the most influential lessons your child receives. Demonstrate smart money management through your actions and take the opportunity to explain the reasoning behind your financial decisions. Your example will teach them as much as any formal lesson.
Whether you’re preparing for your child’s future, guiding them through their early years, or getting ready to support their college journey, our independent financial advisors are here to help. We offer support in planning for their future and your own, providing a valuable resource to ensure you’re making informed decisions.
Looking for a financial advisor? Explore our directory or check out our online resources to get started.
