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On The Money –
A Financial Wellness Series
On The Money –
A Financial Wellness Series
You want to get your kids started on the right financial path, but where do you even begin?
Think of it like a video game: you're giving them the cheat codes early. Teaching kids about money isn't just about saving for a rainy day; it's about giving them the tools to understand how money works in the real world. By introducing concepts like earning, saving, and spending, you're helping them build a foundation of financial independence that'll pay dividends for their whole life. You're setting them up to be financially smart adults who can make confident decisions and avoid common money traps.
So, how do you do it? Start with the basics. You can encourage them to save by setting a fun goal, like a new toy or video game. Give them a chance to earn money through chores and then teach them how to budget with a simple method, like the Spend, Save, Share approach.
Leading by example is key, so make sure you're showing them your own good habits. As they get older, you can level up the lessons by introducing more advanced concepts, like what interest is or how investing works.
Basic Savings
Youth Checking
Payment Apps
Make Financial Education Fun
Money Skills by Age
Everyone spends money; the key is to teach your child how to spend wisely. Involve your child while out shopping. Include them in making spending decisions and help them understand the reasons behind these choices.
Saving is important. Talk to your child about budgets and encourage them to create their own. Share with them the reasons to save for the future. Help them understand that even though you can’t buy everything you want, saving and planning for a future goal is rewarding.
Sharing with those less fortunate is fulfilling and valuable. Let your child find a charity they like and help them find ways to donate time, money, and resources to help others.
Accounts like Redstone’s Safeguard Checking are designed with kids and parents in mind. The debit card is a tool for learning, not debt – it helps them manage their own money without the risk of racking up overdraft fees. For those pivotal 13- to 15-year-old years, parents are a mandatory joint owner. This gives you full visibility and control to guide their first big financial moves – direct deposits from a summer job, their first online purchase, or navigating a return. While older teens (16+) technically could go solo, keeping a joint owner on the account is strongly recommended. You're giving them the independence they crave while still being the backup they need for big decisions or emergencies.
Traditional checking, savings, or money market accounts at an actual bank or credit union are federally insured by the FDIC or NCUA up to $250,000. This is the safety net. If your bank somehow fails, you still get your money back.
Non-bank payment apps don't hold deposits directly. That money might not be sitting in an insured account. If the payment company itself fails (like, if Venmo went bankrupt), your money could be considered part of the company's assets and could be lost or tied up for years in bankruptcy court. It’s a huge risk for zero reward.
This isn't just about learning; it's about earning. They complete the interactive challenges and quizzes to rack up points, which they can redeem for actual gift cards to places like Amazon, Target, and Starbucks. It literally pays them to learn!
By leveling up in Zogo, they're building the foundation for sound financial decisions, meaning you'll spend less time stressing about their future 401(k) and more time enjoying the peace of knowing they're financially competent. It's a win-win for their long-term stability and your short-term sanity.
Financial literacy is a marathon, not a sprint. Start early, stay consistent, and guide your kids toward independence to help them form habits that will set them up for lifelong financial success. Having regular conversations about managing money as they grow is the best way to ensure a strong financial future for your kid.
Plant the seed. Keep it super basic – money is a thing you exchange for other things.
Transition to building habits and connecting effort to cash flow. Open a savings account now so they can see that money actually grows (the magic of interest!).
Give more control and introduce the digital ecosystem. Consider opening a checking account you can both monitor.
Shift from financial provider to a trusted financial coach. The best teaching tool you have is leading by example and having regular, transparent conversations about money management.
Teaching your kids about money is the ultimate life hack you can give them, empowering them with the confidence to navigate the real world. By starting these conversations and establishing good habits early on, you're not just creating savers – you're building the next generation of financially independent thinkers. Continue to lead by example and have open discussions – it's the best way to ensure your kids thrive on their financial journey.
Next month in our Financial Wellness Series: Avoiding Holiday Scams
Enjoying Redstone's On The Money series? You can find more articles like this on our Financial Wellness webpage that explores other topics as well as discover more on your own through our partnerships with Zogo and BALANCE.
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RFCU does not warrant, guarantee, or insure any product or service offered by Zogo.
Any information provided by BALANCE is the property of the BALANCE Financial Fitness Program. The BALANCE Financial Fitness Program is offered to RFCU members through a partnership between RFCU and BALANCE. RFCU does not warrant, guarantee, or insure any information, products, or services offered by or through BALANCE or any third party.
Zogo, BALANCE and RFCU are not affiliated and are separate entities.
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