mom with child and piggybank

Teaching Kids About Money


Adults spend time teaching children important life skills such as reading and arithmetic, but we often don’t make the effort to introduce ideas about financial responsibility. Teaching children a few key concepts related to savings and credit can have a positive impact throughout their life, producing adults who are better equipped to manage their money.  

Saving skills at every age

There are appropriate concepts for dealing with money at each stage of development. Children as young as two or three can use a piggy bank (or glass jar) to help start the process of understanding savings. Four and five-year-olds love to play pretend grocery store and restaurant. Use a toy cash register or a toy credit card machine to ring up the bill. Imaginative play is a great way to teach about paying for goods and services. There are also some great age-appropriate resources from Sesame Street(Opens in a new window) for teaching kids about money and making it fun for everyone. Older children love to play too, but they can also help clip coupons and assist in actual grocery shopping, learning how to make decisions based on price and value. They will often respond positively to having opinions that matter.

Savings accounts

It’s never too soon to open a savings account(Opens in a new window) for a child. Sunflower Bank offers the Essential Savings account without fees for children under 18, which is a great place to begin and make saving fun. Regardless of the account you choose, be sure to involve the child in making deposits, going to the ATM, or doing online banking. Children learn through observing and you may find your child has a natural aptitude for finance!

Learning about credit

Teaching pre-teens about credit—what it’s used for and how the choices they make can affect their credit score—is not as scary as it sounds. In fact, it’s easier to start good habits from day one rather than try to rebuild credit that’s been damaged. According to Experian(Opens in a new window), the average American carries four credit cards with a balance of almost $6200. Teaching teens that credit is actually debt and not potential income is a simple concept that can help them as they go through life.

Older teens and young adults can begin to build credit by becoming authorized users on a parent’s credit card. Parents can review monthly statements with the teen and teach them about making payments. Having a good credit history can help the young adult as they do everything from getting a cell phone to qualifying for apartment leases with lower security deposits.

Modeling behaviors

No matter where you are in your journey to teach a child about money, the most important thing is to lead by example. You don’t have to do anything out of the ordinary—simply involve the child in discussions about things like needs vs. wants, or making choices when shopping, or going to the ATM and paying bills online.
We also host financial literacy events and field trips for students. Ask one of our bankers for more information the next time you stop by.

Banking Education

Ready to explore how First National 1870 can assist you? Speak to a personal banker at a branch near you, contact a specialist on our Wealth Management team, or find the right financial partner on our Commercial Banking team for your business needs. 

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This article contains general information only. First National 1870 is not, by means of this article, rendering accounting, financial, investment, legal, tax, or other professional advice or services. This article is not a substitute for such professional advice or services, before making any decisions related to these matters, you should consult a qualified professional advisor..