April is Financial Literacy Month, so here are five tips for kids and teens learning how to manage their money, from savings accounts to your credit score.
MINNEAPOLIS, Minn – Talking about money can be difficult for many families, but understanding how money works is important, especially at a young age.
April is Financial Literacy Month, and here are five tips from Prosperwell Financial Advisor Nicole Middendorf on everything from starting savings accounts to how important your child’s credit score is.
- “Money Talk” With Your Children Should Begin When Your Children Start Talking
“If you don’t have a savings account for your child, physically take him to your bank and open a savings account and start contributing money, helping him put money away. aside, giving him an allowance so that he can afford to put that money in a savings account, ”Middendorf said.
2. The Greenlight Debit Card is a great tool for teaching your kids about budgeting and saving.
“You can allocate where they spend the dollars,” Middendorf said. “My son would go snowboarding at Afton Alps so I can give him money specifically that only he can spend at Afton Alps.”
The free app gives your kid a physical debit card, but parents basically operate like the bank, teaching kids about the dollar in this automated digital age.
3. If your child gets a summer job, consider opening a ROTH IRA.
“It can be used tax free for their first home purchase or tax free for their graduate school or they can leave it in the ROTH IRA and it’s an easy way to make your kid a millionaire.” , said Middendorf.
4. Explain to your child the importance of a good credit score and how their money management skills (or lack thereof) can have a BIG impact on their financial future.
“You have your GPA, you have your grades in school, it will end when you finish your studies, but your credit score will follow you all your life and it will show how financially responsible you are. with money, ”Middendorf said.
5. For older children who are getting ready for college, discuss with the child and parents what they are willing to help: what can you afford, how much will it cost you in the end? ?
Middendorf says to set these expectations with your children so that they can be wise about the decisions they make for themselves.
CLICK HERE to download the Kids and Cash Workbook from Proseperwell Financial for FREE.
The FREE Kids and Cash webinar will take place on Wednesday, April 28 at 5 p.m.