How to Start Talking About Finances with Your Kids
Robins Financial Credit Union is dedicated to our mission to be Member Focused, Financial Partners, Community Proud. We empower our members with the financial knowledge and resources they need to make informed decisions and achieve their financial goals.
April is National Financial Literacy Month, making it the perfect time to start discussing finances with your kids. Understanding finances at an early age helps kids develop responsible spending habits, build savings, and avoid debt as they grow older. As a parent, you may not know where to start these conversations, but with the right approach, you can make learning about money fun and engaging for your child. As your trusted financial partner, we’re here to provide helpful tips on how to start talking about finances with your kids.
Why Financial Literacy Matters for Kids
Financial literacy isn’t just about managing money – it's about developing smart financial habits that will last a lifetime. According to financial experts, children as young as three years old begin to understand basic money concepts. By age seven, many of their financial habits are already set. Introducing financial education early can set them on a path to financial independence and security.
Children who learn about money management early are more likely to:
- Develop responsible spending habits
- Understand the value of saving
- Avoid unnecessary debt
- Build strong credit histories
- Feel confident in financial decision-making
Start with the Basics – Money Conversations at Different Ages
Ages 3 to 6: Understanding Money & Value
At this stage, children learn best through hands-on experiences. Start explaining the value of money and introducing concepts such as saving and spending. You can do this by:
- Giving them a small allowance and letting them make simple purchasing decisions
- Using a jar or piggy bank to help them visualize saving money
- Reading books about money
Ages 7 to 12: Saving and Spending Wisely
Once your child has a basic understanding of money, introduce concepts like budgeting and saving for goals. Activities can include:
- Helping them set up a savings goal for a new toy or game
- Encouraging them to compare prices when shopping
- Teach them the difference between needs and wants
- Open a youth account at Robins Financial Credit Union to provide and safe and secure place to watch their money grow
Teens: Budgeting, Banking and Credit Awareness
Teenagers are ready for more advanced financial topics, including budgeting, credit and investing. To start preparing them for financial independence, you can:
- Teach them how to track expenses using Financial Tools in Digital Banking or by downloading a simple budgeting app
- Explain how credit cards work and the importance of credit scores
- Introduce the concept of earning money through part-time jobs or side projects
- Encourage them to open a youth checking account at Robins Financial Credit Union to start learning to manage their own money
Tools and Resources to Help Your Child
Robins Financial Credit Union is proud to offer several financial tools and programs designed to educate young savers and spenders throughout their financial journey.
- MyMoney MyWay® Checking Account– designed for those ages 16 to 26 to provide a safe and convenient way to manage their money, putting them closer to financial independence.
- MyStash Checking Account– designed for those ages 12 to 15 that serves as a bridge between childhood savings and independent financial management, allowing the parent to still assist with and oversee spending habits.
- Rockin’ Robin Savings Account– designed for younger children 11 and under that provides a fun and engaging way of introducing the concept of saving money.
- Free Financial Education Modules– Your child can complete financial education modules through Digital Banking over topics such as budgeting, saving, and much more to earn points. Then, redeem these points for gift cards to their favorite online stores.
- It’s a Money Thing Academy– Our free online financial literacy program is designed to engage young adults and provide the tools needed to manage their finances successfully. Learn about topics such as saving, spending, using credit, and much more.
- Change the Way You Save– Our Change the Way You Save program makes saving easier than ever. Once you sign up, every purchase made with your Robins Financial debit card is rounded to the next dollar, and the difference is then deposited into your savings account. Your child can sit back and watch their savings grow!
Set a Good Example
Your kids watch everything you do, so the best way to teach them good financial habits is by displaying them yourself. Be a positive financial role model by:
- Demonstrating smart spending habits– Show them how you budget for your household and prioritize needs over wants.
- Saving regularly– Include them in your savings plan for big purchases or emergencies.
- Discuss financial decisions openly– Explain why you make certain financial decisions so they can understand your thought process.
The Bottom Line
Teaching your kids about money doesn’t have to be overwhelming. By starting with simple concepts and gradually introducing more advanced financial lessons, you can equip your child with the skills they need for a successful financial future. At Robins Financial, we provide excellent tools and youth accounts to help our young members learn how to save, budget, and make smart financial choices.
To learn more about our youth account options and other financial tools to get your child on the right track, visit our website or make an appointment to visit your local branch where our dedicated team is waiting to assist you.
Read our other blog articles to help you gain the financial knowledge you need to succeed.