Don’t be penny-wise and pound-foolish when teaching your children about the value of a dollar. Crystal Rose, Vice President/Marketing Director of Unity Bank says, “We spend so much time preparing kids for college but we often neglect to prepare them for handling their finances as adults. Kids who learn how to save and manage their finances now will be better equipped moving on into adulthood.”
It’s important to begin by keeping the concepts simple, especially for pre-school children. Refer to budgeting as “saving,” and focus on having your child divide their money into categories of “spend, save, and share.”
An allowance can also help instill foundational habits that will have lasting financial benefits,” says Crystal. “It should be tied to specific chores or jobs with different amounts associated with each task. At the end of the week, have a quick meeting to review their efforts and pay them for their work. This will also help to instill a good work ethic.”
Financial education should be a collaborative effort and parents should be active participants in their child’s financial education. Check-in on your child’s savings efforts and help them establish a savings or checking account when he or she is ready. While it’s good to offer advice and personal experience, it’s also important to allow your child to make choices on how they will save and spend the money that they have earned.
Unity Bank offers a comprehensive financial literacy program that is offered free to schools and community groups. The Start Smart Financial Education Program provides students with valuable information about money, saving, and banking. This fun and interactive program is taught by certified Unity Bank instructors. Contact Ramsey Operations Manager, Matilde Estevez at 475 Franklin Turnpike for more information at 201.419.6499.