3 Ways to Teach Kids About Money

PFCU recently visited Our Lady of Calvary School in Northeast Philadelphia to surprise two very talented students. Abbey Merrigan, a 5th-grader, and Allyson Mayer, a 3rd grader, were named winners of PFCU's 5th Annual Picture of Success Art Contest! Congratulations to both of you.

Developing a healthy relationship with money at an early age can contribute to financial success later in life. Over the past five years, PFCU's art contest has served as a great way for parents and teachers to have conversations with their kids about how to envision their dreams and develop the financial skills to make them a reality.

We run this contest every year during National Financial Literacy Month in April, when everyone is encouraged to take inventory of their financial knowledge. While this special month is a great opportunity to have valuable conversations about money, you can help your child learn good financial habits any day of the year.

Teaching Your Kids about Money

Here are three ways to teach your kids about money:

1. Take them on errands. Kids' minds are like little sponges ready to soak in the world around them. On your next trip to the bank or grocery store, let your child tag along to witness financial transactions first-hand. Whether you're counting your change at the checkout counter or depositing checks into your savings account, take the opportunity to explain how money works, and why it's important to maintain a healthy budget.
   
   
2. Make it fun. Find an entertaining activity or game that also incorporates lessons about saving money. The National Credit Union Administration (NCUA) provides free computer and smartphone apps on their website. Games such as World of Cents, Break the Bank and Hit the Road: A Financial Adventure Game, teach basic skills such as currency recognition, coin values and other fundamentals. Learn more here.
   
   
3. Open a savings account. At some point, it's time to upgrade from the piggy bank. Opening a savings account is an exciting rite of passage, and it also serves as a safe place to store allowance or birthday money. For older kids, you can explain the idea of compounding interest, and the concept of saving money over time.