Here are some tips to help kids learn to manage money. Teach them to save. Start with a piggy bank or a shoe box. At the end of each week, help them add up their savings. Challenge them to do the same week after week. Visit your local community banker and open up a savings account in your children’s names. Consider providing an allowance for doing chores with a good attitude. Encourage children to add to their savings accounts. Teach kids to save and spend wisely. Talk about choices and decisions; the difference between needs and wants. As kids get older, driving may be part of the new routine. Give them a mileage book and ask them to track their driving miles for 30 days. This will help your kids begin to see the cost of keeping a vehicle. Set a savings goal to meet each month. Talk about the process of renting an apartment and the bills associated with having their own place. Talk about the need to pay bills on time and how this can impact their credit scores. The earlier kids learn about finances and good payment practices, they will be more prepared for life on their own. The ultimate goal is to achieve a level of financial stability (Provided by Prairie Community Bank in association with Community Bankers Association of Illinois).
Prairie Community Bank Consumer Tip: 2011 Financial Literacy