Teach kids smart money habits this new year

One of the simplest ways to build smart financial habits is to start early. Financial education is one of the most important at every stage of life, and teaching your kids healthy money habits now can help them make more informed financial decisions in the future. 

Whether it's earning, saving or learning to spend wisely, here are a few simple ways you can help your kids develop strong financial habits:

1. Save toward a goal - If your child has a specific toy or item they want, create a savings strategy together to track progress toward that goal. Keeping their earnings in a piggy bank or jar helps show a clear connection between the effort of earning money and the reward of watching it grow over time. Saving toward a goal also teaches kids how to plan for larger purchases and prioritize future goals over immediate wants. 
2. Create a budget game - Use play money and items around your house to create a fun shopping experience. Give your child a set amount of money and help them walk through prices and choices, encouraging them to stay within their spending limit. This hands-on activity introduces budgeting in a fun, engaging way. 
3. Needs vs wants - Teaching the difference between essential needs and optional wants helps kids develop important money habits like thoughtful spending. An easy way to reinforce this is by playing a game at the grocery store where you point out needs, such as food, versus wants like candy or toys. 
4. Establish a bank account - At Abound, you can open an account for your child with them as the primary account holder, as long as you are on the account as well. For older kids, this provides hands-on experience managing their savings. Take them along to deposit money they recieve from birthdays or holidays and show them how their balance can grow over time through dividends and consistent saving.

Financial education doesn't stop at home-it extends into our classrooms and communities. Through our Financial Wellness Program, we visit classrooms across the Commonwealth to teach financial education aligned with Kentucky Department of Education (KDE) standards. If you're a teacher interested in bringing in our Financial Wellness curriculum to your classroom, you can connect with us here.