School isn’t the only place that children can learn. While you have more time with your children at home, it is a great opportunity to start teaching them small financial lessons. No matter what age your child is, it’s never too early to plant the seeds. Here are four financial lessons to help you get started:
1. Need vs. Want
The next time you analyze your budget, let your child know why you are cutting items from it. This is a great way to explain that even though you may want to have streaming services or whatever the item is, it is not something you need. If you keep reiterating this, when they grow older they will most likely consider this before making purchases.
2. How to Earn Money
Start by giving your child an allowance for doing chores around the house whether it’s taking out the trash or putting the dishes away. It is a good way to get your child to develop the habit of helping out and teaching them the value of the money they earn.
3. Pay Yourself First
Once your child starts making money, you want to show them how to save. Teach them how to decide a specific amount of money to place into their piggy bank or savings account. By doing this, it allows them to work towards a goal and it helps them to be more mindful and disciplined.
4. Spend Less Than Earned
At all costs, you want to make sure that your child does not get in the habit of overspending. If they earn $20 a week for example, get them in the habit of not spending the entire amount each week to save for something they’ve been wanting.
As we work together to get through these ever-changing times, let us know how we can help! We have a number of loans and services available to help you with your financial needs. Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or visit us online at caminofcu.org for more information. We are here to help you on your financial journey.