Teaching children about money is not something many parents think about, but it’s one of the most important lessons a responsible mother or father can do. As history has taught us, it’s hard to know when tough economic times will happen. Teaching our children about money will benefit them in their adult lives, especially when they need to be wise and cautious.
The Value of Money
When we teach our children about money, they learn where it comes from, spending it responsibly and the importance of using it wisely for the betterment of their family. With a VFCU Youth Account, youngsters can learn firsthand about the repercussions of spending all that they have, saving for when they need it and accumulating funds for something they want.
When you give your child a monthly allowance, he/she can learn about the essential part of saving. For example, if your son is saving for the latest video game console and you give him a monthly allowance of $60, he’ll know that any reckless spending will derail him from what he really wants.
Improving Your Decision-Making
The decision-making process is one that many parents don’t teach their children about when they’re young. When youngsters face the decisions following their actions, it helps them develop the pros and cons of spending. This is why teaching them about savings will help develop a skill that can benefit them as an adult.
When you put your trust in your children in terms of money and let them handle and face the consequences of how they spend it, it will foster a relationship of trust and responsibility. Our youth accounts can make your children think twice about overspending and using money you’ve given them on things that they don’t need.
Learning from Today’s Mistakes
It’s better to make financial mistakes as a youngster instead of as an adult. Making decisions on spending, credit, savings or cash today will help them become savvier about credit and money in the future.
Stop Spending Impulsively
Have you heard of impulse spending? Remember that time you walked into a store and left with something you hadn’t planned on getting? It’s one of the biggest problems we face when shopping and struggling with products that compete for our attention. Impulse spending is one reason why debt is on the rise. When we teach our children about money, it helps them actively implement their decision-making skills and weigh the cons of impulse spending.
Dealing with Bad Credit
Having a good and solid financial education will help your children fight off habits that lead to bad credit. A youth account can allow them to dip their toes into learning the value and importance of good credit.
A Financially Secure Future
Any lesson about money that you teach your child is important. It will help ensure that they know how crucial it is, how to treat it and how to pay off debts without overspending. Our youth accounts can help your child sharpen these skills so that they can grow up to be productive and financially-responsible individuals. Contact our credit union in Harlingen to learn more!