It’s important for kids to learn about money and financial responsibility.
According to Linda Torigoe and Val Neumann with HawaiiUSA Federal Credit Union, getting kids on-track for financial wellness early in life is something that’ll pay off for years and years to come.
This includes teaching and encouraging good saving and spending habits.
According to Neumann, “visualizing” might make understanding money easier for kids.
“With my kids, I have them split monies they receive or earn into 3 buckets: save, spend, share. Understanding the difference between needs and wants and helping them recognize and avoid impulsive buying lets them make wise decisions on how to spend,” says Neumann.
She also says it’s important for kids to realize that mom and dad are not ATM machines.
“I also make sure they realize that money is earned and not freely given. My kids do not receive allowances, rather they receive earnings for chores they do around the house. This helps them understand the value of money and that they need to do something to earn it,” says Neumann.