Teaching your kids about money doesn’t have to be complicated. Money skills are just like any other skills, they will grow stronger with practice and experience. A great place to begin is with these five simple money truths. You can teach these truths and strive to live them too because they’re true no matter how old you are.
1. Money is important.
It’s so obvious it sometimes gets missed. It’s vital to acknowledge the power and importance of money with kids. After all, money is something they’ll manage their entire lives. Needs, wants, hopes, and dreams, they all require money. One way to build an early, healthy respect for money is to open a savings account together with your child.
This makes it personal. Kids will have a place to safely store and access birthday dollars or allowance money, and you’ll have an easy opportunity to talk with them about their exciting money future. If your child is in the teen to young adult years, consider a debit account that includes built-in safeguards against overspending and fraud.
At MSGCU, check out young money account options including:
- Save-a-lot Squad, geared toward kids under 12
- Mymoney.club, which helps teens 13-17
- Achieve Student Debit Account, helping young adults 16-23
2. Money is under your control.
Kids need to know their actions and decisions about money matter. They have the power to earn money through work, spend and/or save the money they’ve earned, work toward money goals and even make some money mistakes (we all do!). The point is, even now they can be the boss of their money life.
Of course, parents, guardians and financial partners can help. For example, MSGCU’s Achieve Student Debit Account was created specifically for 16- to 23-year-olds and offers secure, 24/7 mobile access, safeguards against overspending and fraud, and easy ways to save more money such as Roll Up the Change. It also includes direct deposit plus ongoing account protection and security-minded resources.
3. Goals guide better money decisions.
Saving money without a goal is hard for anyone to understand, especially kids. When goals are clear and valued, it’s easier to make the right money decisions at the right time. For example, if your child knows they’re saving for new headphones, they’ll be less likely to spend money on takeout.
Identifying and working toward money goals is a lifelong pursuit. Goals change as life changes, of course, but their power to help guide our decisions does not diminish.
4. Money partners are not created equal.
Though many banks and credit unions may look exactly alike to kids, they’re not. Help kids understand that a great-looking mobile app or website does not define a great financial partner. An easy place to start is by teaching the difference between a bank and a credit union.
Banks are for-profit businesses that sell financial products to grow their business. Credit unions, such as Michigan Schools and Government Credit Union, have been created specifically for members and offer financial solutions that benefit members. Specifically, MSGCU is a not-for-profit, all-for-members credit union dedicated to championing member financial success.
5. Money needs a champion.
Preparing kids for financial independence is easier with the right financial partner. At MSGCU, we have smart, proven money solutions for kids, teens, and young adults (and of course for adults of all ages, too).
The Achieve Student Debit Account is a great example of how MSGCU puts members first, including young members. Here are just some of the ways this account protects and grows young users:
- Automatic spending safeguards
- Automatic savings solutions
- 24/7 access with mobile and online banking
- Privacy protection and security alerts
- Direct deposit
- Live local support via live chat, phone or in person
- No-cost, trustworthy financial education
Everything about this account was created to ensure young members have successful and safe first experiences managing their own money; it’s like training wheels for financial independence.
To learn more about money solutions for young people, visit a local branch or call (866) 674-2848.
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