April marks National Credit Union Youth Month, a nationwide effort to help encourage young people to think critically about their financial well-being from an early age and set them up for future financial success.
National Credit Union Youth Month helps make saving fun for kids and teaches young people why it’s important to save early and establish good financial habits. We aim to assist the next generation navigate an increasingly complicated financial landscape. Below are some tips and tricks to empower kids and young people to make smart money decisions from an early age:
Set Savings Goals
Saving money is much easier with a specific goal in mind. By deciding together what to save money for, you can help the kids in your life mark their progress, stay motivated when they’re feeling tempted to spend, and celebrate their victory when their goals are achieved.
Together, brainstorm ways for kids to earn money and then consider matching their savings to help them reach their goals faster. That will keep them motivated and less likely to spend their money sooner. Don’t forget to celebrate when they reach their goal!
Open a Youth Savings Account
Consider opening a youth savings account. At Day Air we offer a Savvy Saver account, where they’ll earn an amazing divided rate and have complete access to their funds when they turn 17.
Play Money Management Games
Games like Monopoly and the Game of Life provide fun ways for kids to learn about finances, from budgeting their hard-earned money to long-term planning for the future. Kids can also have fun saving their money by using a clear jar instead of a piggy bank. As they watch their money grow over time and their savings pile up, you can incentivize them to keep saving by allowing them to buy something special once the money reaches the top.
Make a Budget
Use simple language to teach children how adults earn money and make spending decisions. Ask them to help write a budget for basic needs like mortgage or rent, food, car payments, and cell phones. Explain how your family handles any shortages each month and what your savings goals are, such as a new car, vacation, and college. Include a savings line on the budget to help children get into the habit of saving each month. Don’t forget taxes! Children need to understand that we don’t keep everything we earn.
Talking about money can be as natural as deciding what to have for dinner if you make it a regular practice. When children learn money management skills, they have a solid foundation for achieving financial independence later in life.