Teaching your children about money management from an early age can help set them up for financial independence and success. Here are some practical tips on fostering financial literacy in your children. 

Start Early with the Basics

Begin by introducing concepts like earning, spending, saving, and giving in terms they can understand. Even preschoolers can grasp these ideas through simple games or a weekly allowance. Encourage them to divide their allowance into three jars labelled "Spend," "Save," and "Give." This visual aid helps them understand budgeting and the value of money.

Open a Savings

What better way to learn about the banking system than opening a child's savings account? It's a fantastic way for kids to watch their money grow and learn about interest rates and the importance of saving. Our savings account has no monthly fee and includes two free debit transactions per month. Start with a savings account, and when your child wants or starts transacting, open an Unlimited Account—free for those aged 22 and under at Cornerstone.  

Incorporate Financial Literacy into Everyday Activities

Use everyday activities as learning opportunities. Whether you're at the grocery store comparing prices or planning a family vacation, involve your children. Discuss budgeting, why you choose one product over another, or how long it will take to save for that family trip. These conversations make financial practices real and relevant.

Utilize Resources and Games

Numerous books, games, and online resources are designed to make financial learning fun and engaging for children. Our website offers resources and videos on topics like money basics to investing that are easy to understand for any age. 

Set Financial Goals Together

Setting goals is fundamental to financial planning. Help your children set their own financial goals (like buying a new toy or saving for a bike) and outline steps to achieve them. This practice teaches them about planning and the satisfaction of reaching their goals through persistence and saving.

Lead by Example

Children learn a lot by observing their parents. Be open about finances at home. Discuss your budgeting decisions, savings goals, and even financial mishaps. If they see you managing money wisely, they will likely adopt those habits.

Encourage Earning

As they grow older, encourage your kids to earn their own money. They could start a lemonade stand, do extra chores, or help neighbours. Earning their own money can teach kids the value of hard work and the reward of earning.

Discuss Online Financial Security

Teaching kids about online financial security is crucial. Educate them about safe online practices, the risks of sharing personal information, and how to recognize secure websites.

Continuous Learning

Just like any other subject, financial education is ongoing. Encourage older children to read books on personal finance, participate in workshops, and follow financial news. The more they understand the financial world, the better equipped they will be to navigate it.

Remember, it's never too early or too late to start discussing finances with your children. At Cornerstone, we're here to support your family's financial education journey with resources, advice, and services tailored to every stage of life. Our Financial Literacy Program is one way we do that. Contact communications@cornerstonecu.com to learn more about our free presentations, online resources, and upcoming webinars. 

By investing time in teaching your kids about money management now, you are setting them up for a prosperous financial future. Happy teaching!