It’s never too early to start teaching kids about money.
Helping them build good financial habits now can set them up for a lifetime of smart money decisions. But what does that mean? And where should the money go?
Here are a few simple buckets and explanations to share with your child to help get them started.
Save
Saving should be priority #1! This helps them set aside money for a bigger, more special purchase later. What are they saving for? Perhaps a new bike or a vacation souvenir.
Spend
Spending money is for the things they need right now. Encourage them to be intentional about how this is used. Maybe it’s a present for a friend or a new backpack for school.
Invest
Investing is like saving, but for much longer. Think 10, 20, even 30 years from now! Investing will help with big things like college or buying a home or car someday.
Donate
Donating money helps others. This could go to someone in need like a friend who is sick or an animal shelter. By giving money away, they get a payment of joy in return!
Now that we know four common categories for where money goes, let’s look at a $10 bill to see how much should go in each.
Let’s Raise Smart Savers
We’re here to help families build healthy financial habits. If you’d like to explore savings options for your kid(s), give us a call or stop by your nearest First Bank & Trust location.