7 Tips for Modeling Healthy Money Management for Children

Routine activities like shopping or family outings provide opportunities to talk about money. For example, as you shop for groceries, go out to a favorite restaurant, or enjoy a trip to the zoo or theme park, be sure to point out things that cost money. You may also want to explain that not all activities cost money, such as visiting a playground or playing with a friend.

You can speak about the work you do or the jobs of others in their day-to-day lives, including teachers and bus drivers. Older children may want to talk about ways they can earn their own money such as dog walking, yard work, or babysitting.

Introduce children to the idea of budgeting by letting them help plan out their spending for a week or for an upcoming event. If they earn money from chores or you have a teen with a part-time job, consider helping them set up an account to save their money and withdraw funds for items they want or need. Learn more about SECU’s Accounts for Kids & Teens to help them manage their money.

Have your child help you make a list before going to the store. This will help you stay on track to get exactly what you need and reduce impulse purchases. Help children establish savings goals for items on their “wish list.” Talk about how much it costs and what they would need to save each month to purchase it.

Let children help you search for coupons or sales and bring them along when comparison shopping so they can see how prices can vary from store to store. Set aside enough time so they can help you scout out the best prices when buying clothes or preparing for a party. Older children can also read reviews and help you compare items when shopping online.

Introduce children to the concept of buying things with credit. As an example, let them watch you swipe your credit card at the gas station. Remind them that you’re borrowing money to fill up the tank, and you'll have to pay back the purchase (possibly with interest). Review your credit card statement with them to help explain the process. Highlight the importance of making on-time payments and keeping balances low. You may want to introduce the topic of credit scores and credit reports to older children and teens to help them understand how a good credit score can benefit them with future purchases and loans.

Teach the importance of setting aside some of the money you earn for emergencies or special purchases. It’s never too early to start saving for the future.