Parents Page
Preteens, between the ages of eight and fourteen, control 39 billion shopping dollars and influence billions more in purchases.
Research has shown that children who are taught early about finances accumulate less debt when they are older.
The average college student graduates with an average of $2,200 in credit card debt (in addition to the average $20,000 in school loans.)
Young people aged 25-34 have the second highest rate of bankruptcy.
The highest rate of bankruptcy belongs to people aged 35-44.
Making Money-Savvy Kids
Teaching basic money management skills to children is critical. A first step is opening a savings account for your child at your credit union. Our Scottie Saver program helps teach children to become regular savers and responsible borrowers now, so they'll be prepared when they're out on their own--no matter how far down the road that might be. We make saving money fun, while demonstrating the power of savings to help youngsters reach their goals. Don't wait. Help your children open a share savings account and encourage them to add to it each week or month. Come see us today to start your kids on the road to confident money management.
Allowances Help Children Save
Having allowances can help children understand the concept
of budgeting and saving, but you have to teach them.
If you decide to give an allowance, start one as soon as your
children start recognizing money's worth--kids do this fairly
early. Janet Bodnar, deputy editor of Kiplinger's personal
finance magazine in Washington, D.C., stresses two points
in her book "Dollars & Sense for Kids":
* Don't give an allowance until children are old enough to
manage it, or until your children are at least six years old.
There's no need to rush things and preschoolers generally don't
understand the abstract idea of money anyway. Once children
start first grade they begin learning about money in school, so
they know if they get a $1 bill each week, it's equivalent in
value to ten dimes or four quarters.
* Keep the system simple so you can manage it. "Denying kids
an allowance doesn't make it easier to limit the amount of
money they get their hands on," says Bodnar. Because most
children will get the money out of parents anyway, it's better to
teach them how to manage it themselves than allow them to
nickel and dime you to death. Plus, using an allowance gives
parents and children more control over the children's finances.
Contact Midwest Partners FCU for information about setting
up a Scottie Saver account for your children. Fun Ways to Learn About Money
Consider the way most children see the world around
them. When they're hungry, food appears on the table.
When they're bored, they push a button and they're
watching the Cartoon Network or they flick a switch
that turns on the computer.
For children, it seems everything is in their immediate
grasp. It's not surprising they may not appreciate what it
takes to get that TV or why a new bike doesn't fit in the
family budget this month. Here are a few active ways to
teach children about money.
Children five years and older:
* Play counting games with money. Use coins and dollar bills to play adding and subtracting games.* Role-play. Set up toys in a "toy store." Take turns playing the customer and the clerk exchanging various amounts of money. When your child is the clerk, hand over too much money so he or she counts the money back to you.
