Around 78% of children surveyed in T. Rowe Price’s 14th Annual Parents, Kids, and Money Survey said they would go to their parents for information about money and finances.
Cherry Dale, a financial coach with the Virginia Credit Union, urged parents to take the time to teach their children about finances. She recommended the first lesson to teach them is to pay themselves first.
Dale said a good way to do this is to help their children set up a way to make their savings automatic so that some of any money or income source they may have is automatically put aside for them.
“Whether that’s allowance or their first job or perhaps it’s even money from grandma, grandpa or a relative. But if they can pull 10%, 20%, whatever it is from the gift money is, the income is, and automatically put that aside into some sort of savings account,” Dale explained.
Dale said it could be as simple as putting money into a jar or setting up their first savings account.
She noted that parents should also teach their children about the concept of interest, whether that’s through an actual savings account with a bank or credit union or if that’s the parent adding in interest to the money jar, if it sits unspent for a month.
Dale said savings is a learned habit and the earlier kids start, the more engrained it will be for them as they become an adult.
