Tinker Federal Credit Union (TFCU) believes teaching children about money and introducing good financial habits during childhood can have lasting positive effects. That’s why TFCU is dedicated to coming alongside families with creative and engaging resources to make money management and financial literacy fun.
“Teaching kids about finances early isn’t just about saving money,” says Kara Robinson, TFCU financial educator. “It’s also about earning money, how to spend wisely, how to save and even how to give back to others, all to help them build life skills early. Soon, they will start to understand money as more of a helpful tool rather than something intimidating; that it’s not something to fear or misuse, but something they can manage with confidence. They will learn how to make smart choices, avoid common mistakes and think ahead. It’s also important to teach them about setting goals, giving back and being responsible with what they have.”
Robinson says these small money lessons will plant seeds that will benefit children as they grow and begin to encounter more complex money-related decisions later in life.
“Educating kids about financial responsibility today helps to build the strong, empowered adults of tomorrow,” says Robinson.
Fun and engaging ways to teach kids about money
To help make learning about money fun, TFCU created the SaveAbles Kids Club, led by its mascot, Save-A-Tron, a cheerful robot who helps kids learn to save and earn. Members of the club receive quarterly newsletters with fun activities and helpful tips, plus they receive a special invitation to Save-A-Tron’s birthday party.
“Programs like our SaveAbles Kids Club, along with its mascot, Save-A-Tron, teach kids about money using real-life examples, activities, and lessons they can relate to and have fun with,” says Robinson. “Because of this program, kids are building positive associations with money and feel excited to visit their TFCU branch because they might get a prize or see their favorite robot, Save-A-Tron.”
These resources also help parents feel more equipped to initiate age-appropriate conversations about money and finances. To help parents get started, TFCU shares the following tips:
- Start Early. Begin with the basics. Use simple language to explain what money is and how it’s used to buy things. Talk about the differences in value between coins and bills.
- Save, Spend, Share. Discuss the concepts of saving money for future needs, spending money on what’s currently needed or wanted, and sharing money—the importance of giving back. Emphasize the benefits of responsibly allocating funds to each category.
- Set Goals. Whether it’s saving for a toy, first car, or donation to a chosen cause, setting financial goals helps teach patience, delayed gratification and goal-setting. Share with kids how sticking to a savings plan can reap rewards later on.
- Earn and Learn. Allow a child and/or teen to earn money by completing age-appropriate chores. It’s a great way to make the connection that work results in wages.
Opening a child savings account
Robinson says a great time to open a savings account for a child is when they’re young, ranging from birth to age 5.
“Then, as they get older, bring the kids along and let them make deposits, celebrate milestones and watch their money grow,” Robinson recommends.
Making regular visits to a financial institution helps kids become comfortable with making transactions and talking to customer service representatives. Opening a savings account is a simple task, but family members do need to come prepared with the following information and items to complete the process:
- Child’s name, birthdate and social security number
- Your ID (driver’s license or passport)
- Your social security number
- Personal information: address, phone number, email address
- An initial deposit (cash or check), if required by the financial institution
Financial needs change as children grow
While teaching kids early about money is beneficial, it’s never too late to begin teaching a child, teenager or young adult about financial responsibility or how financial institution services are used throughout life. Older kids and teenagers can learn day-to-day budgeting skills through the use of a checking account, debit card and/or ATM card.
“As kids grow, so do their financial institution needs,” says Robinson. “TFCU offers money management tools to help them tackle these changes as they come. Giving kids their own TFCU checking account and debit card helps them learn how to manage their money in the real world and provides parents with more tools to guide them along the way. It allows them the chance to experience things like tracking their spending and saving money in a low-stakes environment. Parents can monitor spending, discuss smart money choices and help them to build strong, everyday habits to carry into adulthood. Giving kids the tools to manage money early on helps them build confidence, independence and a healthy relationship with money.”
For more tips to teach kids about money and other financial education resources, visit tinkerfcu.org/learn.
Tinker Federal Credit Union is federally insured by NCUA.
