Back to School: Prepping Your Kids for Financial Success

Now that the school year is in full swing, parents are settling into routines and adjusting to busy schedules. Between managing homework, extracurricular activities, and the daily hustle, there’s one important lesson that shouldn’t be overlooked: financial education. Teaching your kids about money management now can set them up for lifelong success, even after the school year has started.

If you haven’t already, it’s not too late to introduce these practical tips to help your children develop good financial habits:

1. Start with the Basics
Even after the school year begins, there’s still time to introduce your kids to basic financial concepts like saving, spending, and budgeting. You can use everyday activities, such as buying school snacks or supplies, to explain the importance of comparing prices and making thoughtful purchasing decisions.

2. Set Up a Savings Account
If you haven’t done so yet, opening a savings account for your child can be a great hands-on way to teach them about banking and saving money. Encourage them to deposit a portion of their allowance or birthday money to help them understand the value of saving. If you’re looking for a great option, Deerwood Bank’s Buckaroo Savings Account is designed specifically for kids!

3. Create a Budget Together
It’s never too late to involve your kids in budgeting for their school-related expenses. Work with them to plan out things like lunch money, supplies, or extracurricular activities. By showing them how to track spending and adjust the budget as needed, you’ll help them understand the importance of managing their money wisely throughout the school year.

4. Use Technology to Your Advantage
There are many apps and online tools available that can help teach kids about money management, even during the school year. These platforms make learning about finance fun through games and interactive activities. Some great apps for financial literacy include Savings Spree and Bankaroo.

5. Teach the Value of Hard Work
Consider introducing your child to opportunities in which they can earn money through small jobs like chores, babysitting, or even a part-time job. This will teach them not just about earning, but also the value of hard work and responsibility. You can then discuss how to wisely allocate their earnings towards saving, spending, and sharing.

6. Discuss Needs vs. Wants
Help your children continue developing a strong financial mindset by discussing the difference between needs and wants, especially when they ask for something new during the school year. This is a key concept in financial literacy that will help them make more thoughtful spending decisions moving forward.

7. Set Financial Goals
It’s never too late to help your child set financial goals. Whether they’re aiming to save for a new gadget, a special outing, or even college, having both short-term and long-term financial goals can motivate them to save and manage money wisely. Celebrate their achievements along the way to reinforce their positive habits.

8. Lead by Example
Your kids are always observing how you manage money. Be a good financial role model by practicing responsible spending, saving, and budgeting. Share your experiences and lessons to provide context to the principles you’re teaching them.

9. Encourage Open Discussions About Money
It’s important to keep the conversation about money open, especially as they encounter new experiences throughout the school year. Answer their questions with age-appropriate explanations, and make sure they feel comfortable discussing money. The more open you are, the more confident they’ll become in managing their finances.

10. Increase Responsibility as They Grow
As the school year progresses, consider giving your kids more responsibility with money. Gradually provide them with financial autonomy by allowing them to manage a bank account and track their own spending. Some youth accounts, like Deerwood Bank’s Next Checking Account, allow kids to have an app to monitor their spending while giving parents oversight.

By integrating these lessons into your child’s routine, you’re equipping them with the knowledge and skills they need for future financial success. The habits they develop now can lead to a lifetime of financial stability and independence. Remember, it’s never too late to start teaching these valuable lessons!

Deerwood Bank is committed to helping families build strong financial foundations. With specialized accounts like the Buckaroo Savings and Next Checking Accounts, they offer hands-on financial tools and support to guide your child toward a lifetime of smart money management. Visit your local Deerwood Bank branch across Minnesota or explore our services online to learn more about how we can assist you and your family in achieving financial success.