Starting your children on the right financial foot

Good financial responsibility can never start too early and while your kids are out of school for the summer, now is the perfect time to teach them about keeping track of their finances and the value of a dollar. With this early life lesson, your children can learn how to treat themselves to things they want by saving their money instead of relying on you or spending their money as soon as they get it. Here are a couple of thought starters to get yours on your way.

1. Have your children work to afford something they really want to buy. Give them chores to earn an allowance or have them start their own neighborhood business to make their own money. Each week, help them count up the money they made and put a little into either a piggy bank or somewhere safe from spending. At the end of each month, tally the weekly totals and walk through how much they’ve saved and how much they need to earn to reach their end goal.
2. Teach your children the importance of budgeting and not overspending. When planning trips to the grocery store, have your children help write a list of things to get and set a budget for your trip. Get your children to keep track of your purchases and spending as you shop. This will help teach them the importance of not overspending and sticking to a budget. If they do a good job, and there is room left in your budget (wink, wink), reward them for their help by grabbing a treat on the way out.
3. If your children don’t have one already, consider opening a simple savings account for their money. At Chesapeake Bank, our branches offer no fees or minimum balance requirements. This means your child can take the money they have saved up this summer and put it directly in their own checking or savings account to watch their finances grow.

Teaching your children the importance of saving, budgeting and purchasing items with their hard earned money is key to heading down the right financial path. By starting early, you will be setting the foundation of financial literacy to help them make smarter choices about money when they get older.