Raising financially literate kids: It pays off.

Whether you’ve got a 4 year old or an 18 year old at home, it’s never too early (or too late!) to start talking about money management. As a credit union established by teachers, we’ve got a few teaching tricks up our sleeves to get the personal finance party started:

Elementary school

Start simple: Make sure your child is familiar with money identification. (Things might be going digital, but it’s still important to know the value difference between a nickel and a dime!) Slowly integrate the idea of saving money and identifying spending needs versus spending wants into conversation.

Gamify it: Everything’s better when it’s fun! Play “store” at home, or integrate finances into bedtime storytelling. (Jack and the Beanstalk is the perfect story for this conversation. How much do you think those magic beans cost?)

Practice IRL: Saving really pays off! Consider offering to contribute–or even match–when your child saves. Reinforcing good financial habits with rewards can help keep your child engaged, excited, and right on track. Many finance experts believe the right time to open a savings account for a child is around 9 years old.

Middle school

Budget, budget, budget: Now’s a perfect time to help a child build their first real understanding of their finances. Start with something like back to school shopping: how many pairs of pants will you need, and how much do you think each pair will cost? Add line items for any allowance or part-time jobs, monthly savings, donations, and fun-money spending.

Build the language: It’s time to start having some sit-down convos about credit, credit scores, loans, investing, debt, and interest. Helping ensure your child understand these concepts now can help avoid any “uninformed young adult with a shiny new credit card” disasters. Because, trust us–it happens.

Start earning: Working jobs and earning money can be fun, and that’s an important life lesson. Encourage your child to set up a lemonade stand, dog walk, mow yards, or start a side hustle. It’s also a great opportunity to learn about income, expenses, and profit margins.

If they’re going to be on a phone, why not make it productive? Sign them up for the ZOGO app, so they can start earning “Pineapple Points.”

High School 

Money makes money: It’s time to teach your student about investing. Teach them about stocks, bonds, mutual funds, retirement accounts, and the concept of compound interest now. Even just a little bit invested right now can pay off in a massive way later. 

Taxes: Plain and simple, taxes are just no fun. But it’s an important conversation to have, especially as your student takes on their first paying job! Make sure they’re comfortable with the concepts of income tax, payroll tax (and what taxes goes toward), how to file a basic tax return, and tax deductions/credits.

Standing on their own: They’re going to fly the nest soon enough; it’s time to start talking about how to achieve financial independence. Running real-world, pencil-to-paper budget scenarios can help your student understand the real cost of things like auto insurance, rent, and more. 

Up for a field trip? Come on in to your local Westerra branch–we’re happy to meet with your child and help strategize for their financial future. Learn more about Westerra’s student checking, and savings options, as well as other resources for your journey ahead.

Westerra does not provide any professional tax, legal, or investment advice. Please speak with a professional advisor.