Is It Time for the Money Talk? | St. Johns Bank
As parents, there are certain conversations we know we need to have with our children at some point in time. But when it comes to finances, parents can be a little confused on when is the best time to start having the “money” conversation.
Is it when they are school-aged? Or should the money talk wait until kids have their first job and are able to open their own checking account?
Our team at St. Johns Bank is here to help parents understand the importance of having financial conversations with children and at what age those money talks should take place.
Hey, Kids. Let’s Talk!
Are you ready to start opening up the lines of communication when it comes to talking to your children about money? The key is to make sure you are talking about the right topics in terms of their age.
Children as young as age 3 or 4 should be able to understand the basics when it comes to money. At this age, consider using some playtime to add in a money lesson or two.
You can start by playing grocery store. Give them a bank, and tell them to go shopping. Then total the items and have them give you how much they owe.
If they have enough money, great. If not, this will help them learn that they can only purchase items they have money for. Therefore, they have to put some items back.
As your child gets older, you can start to play restaurant and help him or her with the idea of tipping when paying for a meal.
Allowance = Checking Account
Are your children earning money for chores? Now is a good time to get your child a checking account.
Establish the first account alongside your child. That way you can teach them about how to deposit checks (or cash), to keep track of spending and even how to save a little money for a rainy day.
The Money Conversation Should Never End
If your children are teenagers, that doesn’t mean you shouldn’t give up on teaching them important money lessons. They can start learning at any age.
For children who are older, it is important to start slow by going over the basics of money, including how much money should go into savings with each paycheck.
Then, you can allow your children to be a part of your financial journey. For instance, you can have them help you pay bills.
You can also have them be a part of your financial goals. Are you wanting to purchase a new car or go on vacation? Allow them to watch you save for your goal.
Remember, children are more likely to follow what they see you doing, especially when it comes to money.
Is it time to open a checking account for your child? Visit our website today to learn about the checking account solutions at St. Johns Bank.