Teaching Your Child About the Importance of Money Management

Teaching Your Child About the Importance of Money Management

There are lessons in life that usually come at a cost. Yet, one of the most important non-costly skills a parent can teach their children is how to develop good financial habits. With a VFCU Youth Account, your child will learn about money management and gain interest in the value of a dollar.

VFCU’s Youth Account will help your child learn how to save for a more secure future. Get in touch with us to set one up.

Teach Your Children About Money

One of the most important things we can do as parents is teach our kids about money. The economic landscape is constantly shifting, and our children need to learn to be wise and prudent when it comes to financial matters. The earlier they learn, the better.

According to VFCU Executive Vice President Patsy Hinojosa, a Youth Account will help improve much needed financial skills, such as money-management, for younger generations. “The Youth Account is great for youngsters to start implementing financial skills that they’ll need in the future,” she said. “It teaches them to better balance and manage their money.”

Below are some good reasons to incorporate money lessons into your child’s upbringing.

Learning Early

Lets face it, when we were younger, we had no clue where money came from. We won’t judge if you really thought it grew on trees. But teaching your children the real value of money and how it’s earned will make them more cautious when spending it. Having a Youth Account will allow your child to learn the essentials of being financially secure. Having them save for their favorite toy or pastime will result in a large appreciation and value of their property.

Decision-making skills are developed when children consider the pros and cons of their actions with money. Many children make choices at spur-of-the-moment times and ask questions later. Teaching them about money early on will make them stop and think about the consequences before making a choice.

Financial Responsibilities

Allowing your child to handle his or her own money is a positive way of fostering responsibility. Children should be able to make choices – under your watchful eye – in order to learn. Remember, most skills are learned from mistakes. There are many responsibilities to learn as we grow up. Cash, credit and saving require skills that are learned from mistakes. The older your children become, the more financially savvier they’ll be.

Moreover, being conscious of what an item is worth is part of a skill learned through money management. When children are conscious of the real cost of a toy or something else they want, they’ll have a better understanding of how to budget and spend to acquire it. Hinojosa says it’s better if they know the real value of money early on.

“Being money-conscious is a skill that’s essential to craft early on. Children will learn how to budget and our Youth Accounts help them get a better understanding of that.”

Impulse Spending and Maintaining Great Credit

We all impulsively spend sometimes. It’s one of the main reasons why credit card debt is on the rise and why college grads are moving back home after graduation. Teaching kids about the dangers of buying things on impulse will prepare them for the challenges of handling money when they’re on their own.

On the same note, to earn a good grade in the school of debit and credit, your child must be able to have a firm grasp of their financial education. With good credit skills, your child will be able to prepare for a good score as they age. As we all know, purchasing a house or car is dependent on good credit.

Goal Setting

Goal setting is one of the greatest ways to motivate and inspire children to be practical about any commodity. It’s a way to instill a hard-working ethic and motivation, which are easier when money is involved. As we discussed above, lessons about money are great for your child. They will ensure that your children grow up treating money responsibly. This will set them up for success.

Today’s Youth is Tomorrow’s Future

There are many skills that younger generations should start developing. Learning how to balance a budget and being money conscious are just as important as communication and team building. That’s why VFCU is determined to provide the younger generation with the tools and resources to help them become financially successful individuals. Visit our credit union in Brownsville to get started on setting up your child’s Youth Account.

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