Moore for Your Money Blog

Financial Literacy Month kicks off each April and was first designated by Congress in 2003. You’ve often heard me speak of its importance as teaching young people the principles of financial well-being is one of my passions. You have also seen many of the Anahuac National Bank team volunteering in our schools to read to children, talk about savings programs or establishing good credit or buying a car, and supporting teachers and administrators in any way we can. This is an integral part of our bank values.

Let me also speak, as a parent, to say that the foundation of financial literacy begins at home. We all know children are great observers of home life and they are most certainly watching us manage the highs and lows of paying bills, saving money, and reaching financial goals. Teaching them good financial habits is as important as reading, writing and math skills and it is never too early to start! Here are tips to help your children grow up to be financially responsible teens and adults.

Talk about financial goals and saving.

If you are concerned about where to start, simply talking about money in everyday life is a good beginning. You can work it into activities like shopping or going to the bank. Then help your children make smart spending decisions by teaching them how to set financial goals. The next time your child asks for something new, electronics, brand name shoes or sports gear, turn it into a teachable moment by encouraging them to set a goal and save their own money to buy the item, or pay for part of it themselves. Remember, try to keep it fun and not a chore. Let them enjoy the money they work for to help them stay with their savings plan. Reward them for sticking to their plan and show them that being smart with their money does not have to mean going without fun.

Teach them to keep track of money.

Your children may start receiving or earning money from an early age through allowances, gifts, and odd jobs like babysitting and chores. As soon as they receive money, help them keep track of it by teaching them how to use a simple budget (money in and money out). At the end of the month, look at the budget together and talk about what they enjoyed or regretted spending their money on and why. I can assure you that tracking spending for any of us can be an eye-opening experience. Take your child with you to the grocery store, a great opportunity to practice avoiding impulse purchases and remain on a budget. You might shop with a list so they can see how you purchase only the items on your list.

Teach them about debit and credit cards.

Both debit cards and credit cards have advantages. For example, a credit card can help older children build credit and gain access to points. A debit card can help them control their spending and avoid going into debt. Help your child understand that when a person makes a purchase with a debit card, they are using money they have deposited in the bank. In contrast, a credit card purchase is borrowing money from the credit card company. As we all know, transactions made with plastic (debit or credit cards) make it harder to feel the pain of parting with money. Reinforce that a debit or credit card is a responsibility, not a magic, bottomless supply of money.

Discuss your family financial decisions with your children or grandchildren, explaining the reasons behind them. Leading by positive example will have a lasting impact on your children’s financial behavior. If you would like to know more about the basics of financial literacy, please come by any of our Anahuac National Bank family of banks. We will be happy to share how we have helped children and families in our communities navigate the path to financial confidence. We thank you for your continued patronage.