Tuesday, April 4, 2017

Lessons for Kids During Financial Literacy Month

April is Financial Literacy Month, and a great time to teach children about finances. Whether you’re a parent looking to teach your children about money management or a professional looking for a few tips, here are a few lessons you can teach kids to encourage them to be financially responsible adults:

1. How Money Works 
Now that most consumers use credit or debit cards for a majority of their purchases, children may not realize they are actually spending money. For this reason, encourage young children to handle cash to pay for items. Take time to explain to them that products and services have different prices. They also need to understand that money can be spent only once, and that after buying something, a person needs to earn more money in order to buy something else. Play “grocery store” and take turns being the cashier and the customer.

2. Saving for a Goal 
Teach your children about the importance of saving and putting some money aside a bit at a time until they have enough to buy what they want. Kids can learn to keep money in a safe place and practice their math skills by keeping track of the amount saved for future spending. Consider opening a savings account just for them to practice this habit, and take them to withdraw the money and purchase the item they have been saving for. Community Financial also offers a Youth Club for members 12 and under, where children earn special rewards when they make deposits.

3. The Importance of Self-Control and Making Smart Financial Decisions 
 Help your children learn the difference between needs and wants. Explain that although everyone really wants things like toys and electronics, you have to pay for needs – things like food, shelter and heat – before you can buy items that are wants. Help them develop a plan to save and spend their own money that takes into account their wants and needs. Also, the next time you need to make a big purchase, talk it through with your child. Show them how taking the time to ask questions and learn about different choices helps you reach smart financial decisions.

How will credit unions celebrate Financial Literacy Month this year? During the month of April the Credit Union National Association will celebrate Youth Month. This year’s theme is “Give a Hoot about Savings.” To celebrate, we invite our young members to come into the branches, grab a coloring sheet, and enter a raffle. This year, Student and Youth Club members can enter to win a gift card to the Detroit Zoo (south branches) or to Avalanche Bay (north branches).

Remember it’s never too early or too late to learn about managing your personal finances! Find out more about our youth services and Student-Run Credit Union program at cfcu.org/youth.

From April 22-29 Community Financial will celebrate Money Smart Week. Money Smart Week is a public awareness campaign to promote financial education across all age groups. Launched in 2002 by the Federal Reserve Bank of Chicago, the program is now active in more than 45 states. Find local events by visiting moneysmartweek.org.

During Money Smart Week, student and youth club members will get double punches/prizes. So be sure to stop by any of our branches and make a deposit for 2 times the fun! Happy Financial Literacy Month!

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