Stress-Free Ways to Teach Kids Smart Money Habits

We get it, talking about money can be stressful. But teaching kids smart money habits doesn't have to be hard. When done right, it can even be fun!

Here are a few tips to incorporate money management basics into your everyday conversations.

1. Dream About & Save for the Future

It's great to have big dreams, but it's also important to take small steps now to help you reach those goals down the road. What are your kids interested in? If they are dreaming about upgrading to the latest video game system, going to an expensive summer camp to pursue a special interest or something else, starting a Savings Account with birthday money or their earnings from a lemonade stand can help them learn how to plan ahead and make good choices. It's a lifelong lesson that will benefit them for years to come.

2. Shop for the Best Deals & Talk about Wants vs. Needs

Whether you're grocery shopping, back-to-school shopping or making a bigger purchase, kids can practice their math and life skills by helping you compare options and find the best deal. You can also use the shopping process to talk about wants vs. needs. For example, if you're back-to-school shopping, ask your child to consider each item, estimate costs and find simple ways to cut back. Can they reuse some items from last year? If backpacks, lunch boxes and other items are still in good shape, there's really no need for new ones.

3. Write out a Budget, Together

Taking the time to put pen to paper is a valuable exercise for kids who may not understand how quickly items add up. It may even help them find new ways to save. For example, is there a sale on household necessities you use often? Challenge your elementary or middle school child to scan the latest ads to find the best deals on the items your family can't do without and reward them with a small treat at the store for a job well done!

Financial learning is a lifelong process and the sooner your kids get started, the better!