
Building Smart Money Habits with Your Kids
As a parent, teaching your children about financial responsibility is one of the most valuable life lessons you can offer. Developing smart money habits early not only sets your kids up for success but also helps your entire family work toward shared financial goals. With a fresh new year upon us, there’s no better time to start. At Columbia Credit Union, we’re passionate about helping families build strong financial foundations.
Why teach kids about money?
Children who learn about money early are more likely to develop healthy financial habits as adults. Teaching kids about earning, saving, and spending responsibly fosters independence and confidence. It also empowers them to make informed decisions about their future finances.
A great way to start is with Fern, our free tool in Digital Banking and Columbia CU app! Fern is the perfect tool to teach your kids about money in a hands-on, interactive way. Whether you’re rewarding good grades, incentivizing chores, or simply helping your child learn the value of a dollar, Fern simplifies it all.
Here’s how Fern works:
- Earn: Link Fern to your child’s account so they can earn cash for completing tasks, whether it’s mowing the lawn or cleaning the dishes.
- Save: Kids can learn to allocate their earnings toward savings goals, like a new toy or game.
- Spend: Teach them to make responsible spending decisions while staying within their budget.
- Borrow: Help them understand the concept of borrowing money from mom and dad and paying it back over time.
- Allowance: Set up recurring allowance deposits to give them steady practice managing their own money.
With Fern, your kids can practice smart money habits while having fun. You can register for Fern for free in Digital Banking or the Columbia CU app today!
Practical Tips for Teaching Money Habits
- Introduce the Concept of Earning
- Give kids opportunities to earn money by doing chores or taking on small jobs, like babysitting or yard work.
- Encourage them to see the connection between effort and reward. This helps them understand the value of money and builds a strong work ethic.
- Teach the Importance of Saving
- Open a savings account for your child at Columbia Credit Union to help them understand how banking works.
- Use clear goals to motivate saving. For example, if your child wants a new toy or game, help them calculate how much they need to save and track their progress.
- Make Budgeting Fun
- Teach kids how to budget using the Fern tool. Incentivize tasks and chores, reward good grades, and more using an easy online interface.
- Fern links to your kid’s account seamlessly.
- Be a Role Model
- Demonstrate smart money habits in your own life. Share your budgeting strategies with your kids and involve them in family financial decisions where appropriate.
- Show them how you comparison shop, use coupons, or evaluate big purchases to maximize savings.
- Talk About Needs vs. Wants
- Help your children differentiate between necessities and luxuries. Use real-world examples like grocery shopping to illustrate this concept.
- Encourage mindful spending by discussing whether a purchase aligns with their goals and values.
Getting started is easy!
Teaching kids about earning, saving, and spending responsibly is a valuable life skill that sets them up for long-term success. And it doesn’t have to be complicated. By setting goals, practicing budgeting, and fostering open conversations about finances, you’re equipping them with skills that will serve them for a lifetime. Ready to get started? Log in to sign up for Fern for free in Digital Banking or the Columbia CU app and give your kids the gift of financial independence!