FAMILY FINANCES

You may have had an actual “piggy” bank as a child, but experts say a clear jar is a better option for young children. Kids can see their money physically grow over time, even if they’re too young to understand denominations. This also helps to instill the idea that money is important and needs to be kept safe. You can still decorate the jar for a fun craft project.

Abstract concepts like credit cards and online purchasing will come later. But for now, kids can appreciate the physicality of actual cash. At 3 or 4, they can start identifying coins by color, size and even the numbers printed on them. Counting coins is also a great way to introduce them to the basics of practical math. (We recommend cleaning coins first, and of course, close supervision.)

Play is one of the most effective ways for preschoolers to learn new concepts. Young kids love role-playing games, so try setting up a “store” at home. You can use real money or make your own. Place simple “price tags” on items and take turns with your child playing customer and merchant. Exchanging money for goods helps give kids a sense of money’s worth.

Look for bedtime reading that involves topics related to saving, spending or giving money – for example, families going shopping, buying a new house or car, or parents earning a living at work. If possible, use book series with characters your child already loves. A relatable, engaging narrative gives kids context to adopt new ideas with more staying power.

If you haven’t already, make your child’s allowance contingent on effort. Set expectations and stick to them. Old standbys like cleaning their room, feeding pets or putting away dishes still work. Good grades take hard work, too. The point is to help them understand that money doesn’t come easy. And if they want to earn more, you can negotiate with them for more demanding tasks.

As kids become more interested in things beyond their immediate means, it’s time to open their first savings account. Do it together, and if possible, in person. Accompany them to the bank regularly to deposit their saved cash. For more incentive, consider matching some or all of what they deposit each time. Go over their bank statements with them and cheer their progress.

Make an appointment to open a savings account for your child at a nearby U.S. Bank branch.

In this world of constant social pressures, this concept can be a challenge. Encouraging kids to give to those less fortunate is a great way to help them appreciate what they have and better understand what luxury means. Charity needn’t be monetary (though it can be) – volunteering at a food shelf or donating toys or clothes to others who need them helps reinforce what’s really important. Be sure to explain the value they’re providing, in both monetary and human terms.

Talk about your meal plan and take your kids grocery shopping. Let them help plan the list, explaining why some items are more important than others. At the store (or online), give them an item to find and choose. Help them compare prices and quantities to find the best buy. Explain how quality affects the value of different options and why you choose one over another.

Start having real conversations about the connections between money and work. Explain that while certain jobs earn more than others, building these careers can cost a lot of both money and time. Discuss ways your child could realistically prepare for a career that interests them, including things like college or trade school (and how you’ll pay for them), internships and volunteer opportunities.

Open a custodial brokerage account that offers fractional shares, no trading fees and a low (or no) minimum balance. Pick a few companies your emerging teen admires (footwear, clothing or video-game brands, for example) and let them buy a few dollars’ worth of each. Track the stocks’ performance with them daily and explore the reasons why stocks gain or lose value.

It may be tempting to micromanage your child’s finances. But sometimes, feeling the consequences of a poor decision is the best way to make a lesson stick. If they make an impulse purchase that leaves them without enough left for something they want later, resist the urge to back down and help them out. Explain that everyone needs to think about the future when making money decisions.

At this age, kids are ready to start learning the ins and outs of personal money management. A kids’ debit card with parental controls is a great way to get started. That’s why we offer complimentary access to Greenlight with your Bank Smartly® Checking or other qualifying checking account.¹

Now is a good time to add your teen to one of your credit card accounts as an authorized user. You’ll be responsible for paying off their purchases, so make a plan for how much they’ll be allowed to spend and how they’ll reimburse you. If you pay off the full bill every month, your teen can start building credit as a user on the account.

Workplace experience now can give your teen a leg up, so support their efforts to get a job. Help them fill out applications and eventually a W-4 when they’re hired. Emphasize the importance of making regular deposits into a savings account, and consider setting up a 529 college savings plan or custodial Roth IRA and matching their contributions.

At 13, your child is eligible for a joint checking account that you’ll cosign for. We recommend an account with robust online and mobile banking such as our Bank Smartly® Checking account. Regularly review balances and transactions together and challenge your teen to balance their checkbook regularly.

Make an appointment to open a joint checking account at a nearby U.S. Bank branch.

At this age, kids are ready to start learning the ins and outs of personal money management. A kids’ debit card with parental controls is a great way to get started. That’s why we offer complimentary access to Greenlight with your Bank Smartly® Checking or other qualifying checking account.¹