Remembering those first paychecks you received for a summer job, babysitting gigs, or an allowance from your parents brings back nostalgia for simpler times. Fast forward to today, and your kids are probably going through a very similar moment in time.
“Kids start learning about money at an early age and by the time they start making money, it’s a great time to talk about financially sound habits that can last them into adulthood. , like saving, budgeting and making the most of what they earn,” said Jared Evans, community manager for Chase at the Stony Island Community Center branch in Chicago’s South Shore neighborhood.
Here are some tips to help them start their own journey to financial health:
Let them earn their own money: Allowances are a great opportunity for kids to earn their own money for “chores” like watering plants, babysitting, or doing assigned chores. To help manage the money they earn, you can open a children’s bank account that gives them access to their funds with your supervision and control. It’s like a “learning permit” for money, letting you designate how much they can spend and where. Chase First Banking comes with their own debit card so they can start learning financial responsibility, giving them the opportunity to learn the fundamentals of saving, spending and earning.
Discuss “wants” versus “needs:” Teaching your children the importance of saving for the unexpected is a valuable lesson. Talk to your child about what they would like to do with their money and help them create a list to show what might be considered a need and what a want. To keep the conversation going, engage them in family discussions about planning a trip to the grocery store, major purchases, or how to adjust the budget when gas and food prices rise.
Set savings goals: Having a goal in mind can make saving fun. Motivate your children by finding out why they want to save and how they can reach their goal. Take the opportunity to educate them on the importance of setting goals and creating a plan that can help them achieve them.
Consider opening their first account: Many children may opt for their piggy bank as a safe place to keep their money, but it’s important to teach your children the benefits of having their money in a safe place. Opening of a Chase First Banking account at a young age can be the first step in learning to save and manage for the future. You can make it memorable by visiting your local bank branch and showing them how to use their card responsibly.
Buy online together: Involve your children in these transactions by shopping with them. Ask them to help you find better deals and add up the totals in your cart before you pay. Once you’ve made up your mind on what to buy, help them understand that digital purchases should always be paid for with real money from their bank account.
Talk about money: It’s important to start conversations about money at an early age – it’s never too early. Have an open conversation about budgeting, discuss the importance of price research to make informed decisions before buying, and keep the conversations going.
For more information on Chase products for kids and teens, visit your local Chase bank to speak with a community manager or visit https://www.chase.com/personal/financial-goals/parents.
Content sponsored by JPMorgan Chase.