Ideas to Build Healthy Money Habits in Kids | Richard Banks & Associates, P.C.

School will be starting before you know it, and with the new school year comes more educational opportunities for your kids. Since they will be learning new things, our team at Richard Banks & Associates, P.C. felt that perhaps now is the time to help instill healthy money habits! To help you do just that, we’ve come up with a list of helpful ideas.

1. Get them a piggy bank. The first step to having a healthy relationship with money is knowing how to save. By giving your kids a piggy bank, you’ll be helping them get off on the right foot on the saving money front.

2. Open a bank account. That piggy bank will eventually get full, so why not take your children to open up their first savings account? Most banks have savings accounts that children can open, and over time, you will be able to show them how they are actually gaining money by leaving theirs in the account to collect interest!

3. Consider matching their savings. If you’re able to, consider adding to your children’s savings account. You don’t have to do dollar for dollar, but could instead match them at 25 or 50 cents per dollar they save.

4. Have them save for something they really want. If your kids have been eying a new toy or accessory, this is the perfect time to teach them to save so that they can pay cash for what they want. Learning to be fully reliant on cash and not relying on credit cards is a very important lesson for them to learn.

5. Help them create a budget. No, your children’s budget won’t be as in-depth as yours, but it’s still a wise thing to get them used to creating at a younger age. Budgets make our world go round, and not knowing how to set one up can lead to trouble later on in life.

6. Lead by example. Your kids are always watching you, which is why leading by example can be one of the greatest ways to teach them about healthy money habits. If they see you saving, chances are they will be more inclined to do the same.

We know you want your child to get off on the right foot when it comes to money habits and hope that these tips come in handy! Leading by example could also mean showing your child how to bounce back from financial hardship. If you’ve found yourself in a seemingly hopeless financial situation and are considering bankruptcy, remember that Richard Banks & Associates is here to help reconcile that situation.