Making wise money decisions is important at all stages of life, but it becomes even more crucial when you enter parenthood. As a parent, your choices impact your family’s welfare and influence your child’s future attitude toward spending and saving money.
MyBankTracker has written extensively about topics related to Family Finance, ranging from how much allowance parents should give to how to cope with a child wanting to move back home after college.
Raising children isn’t easy, so we hope some of the following stories can help out a bit with the financial aspects of parenting.
It’s important to show your kids the value of money beginning in their formative years. Giving kids a weekly or monthly allowance is a great way to teach your kids about the basics of currency and show them first-hand the benefits of saving. If you’re on the fence about giving your child an allowance at all, these allowance tips might help you decide. If you’re worried about contributing too much or too little to your kid’s wallet or purse, read our piece on allowance calculators.
Teaching the Basics
As the years pass, you can take steps both personally and through external tools to help your child move toward financial independence. Teaching kids about money can be a long process, but following the ABCs of saving could help your child establish a responsible attitude toward money. If your child is interested in playing video games, a few financially minded games exist. From soccer to celebrities to setting savings goals, the games cover a wide breadth of topics.
Setting up a Savings Account
If your child understands the fundamentals of money but could use some lessons on how a bank works, setting up a basic bank account might be the way to go. It’s certainly better to set up your child’s first savings account sooner rather than later because his or her first account can provide important building blocks of money management know-how. Not all savings accounts, however, are created for use by families or children. For this reason, you should do a little research before deciding on a savings account for your kid. You can read about different varieties of savings accounts, including Fixed Rate accounts, Child Trust funds and Instant Access Savings accounts.
Tackling College Costs
Of all the individual expenses you will face as a parent, college will probably be the most daunting. There are many different ways you can handle the college conundrum, including covering all the costs, splitting the dues or handing the burden over. Depending on your family’s situation, you might choose to cut your child’s financial cord before or after college. If you and your child handle the costs together, sit down and plot out the expenses you might be able to cut, including excessive meal plans and pricey textbooks. You’ll most likely need to use the services of a bank at some point when sending a child to school, whether you elect to start a 529 plan ahead of time or just set your kid up with a student checking account.