Blog

April is Financial Literacy Month and Credit Union Youth Month, so it’s the perfect time to think about how to help our children develop smart money habits that will last a lifetime. Parents and guardians have so many unexpected opportunities to teach kids about money in the course of everyday life. By turning these moments into easy-to-understand lessons, you can empower your children to make wise financial choices from the start. Read on for some easy ways to build your child’s financial literacy.

Depositing Your Paycheck: A Lesson in Earning and Saving

The next time you deposit your paycheck or check your direct deposit statement, turn it into a learning moment for your kids. Explain how money gets to your account, whether through paper checks or the convenience of direct deposit. Show them how budgeting works—how a large portion of that paycheck goes toward necessary expenses like housing, food, and clothing. Discuss how saving part of your paycheck is important too, whether for emergencies, future goals like college, or retirement. Through these little interactions, your child will start to understand the concept of earning, saving, and planning.

Grocery Shopping: Determining Needs Versus Wants

Grocery shopping is another perfect opportunity to teach financial concepts in a real-world setting. Explain the difference between needs and wants – for example, you need healthy groceries like vegetables, fruit, and foods rich in protein, but you may want a treat like ice cream or candy. You can also talk about how taking the time to find and use coupons, buy in bulk, or choose generic items can help save money. These are great skills that will benefit kids as they become more independent.

Using a Credit Card: The Power and Responsibility of Borrowing

If you’re using your credit card to pay for groceries or a family outing, take a moment to teach your kids how it works. Explain that using a credit card is like borrowing money, allowing you to purchase something today and pay it off later. Help them understand that credit cards are a big responsibility. Teach them about paying off the balance when the bill arrives and that the interest charged on unpaid balances can add up quickly. Early exposure to concepts of credit and debt can help your kids develop good habits later in life.

Allowance Time: Teaching Budgeting and Saving

Giving your child an allowance is a great way to introduce them to the basics of budgeting. Sit down with them and set goals for how they want to divide their money between saving, spending, and sharing. A portion could go into savings for something they want, another portion can be spent on things they enjoy, and some could be donated to a cause they care about. Learning how to manage an allowance can give your child a head start on healthier budgeting in the future.

Paying Bills: The Reality of Expenses

When it’s time to pay the bills, bring your child into the process. Show them how you pay for services like electricity, internet, and phone service. Explain that paying bills means that money is taken from your account to cover these essential services. Let them know how you keep track of your expenses and how important it is not to overspend.

ATM Withdrawals and Debit Cards: The Basics of Money Management

Using an ATM or a debit card? This is an excellent chance to show your child how money comes from your account when you make a withdrawal or purchase. Talk about the importance of keeping track of debit card transactions in a check register or digital app so you don’t overspend, which could translate to overdraft fees. 

Financial Literacy Should Start Early

Research shows that children as young as 5 start to develop emotional reactions to spending and saving. These early lessons can shape their financial behaviors into adulthood. That's why it's never too early, or too late, to start teaching healthy money habits. With the right financial tools, children can develop the skills to manage money in meaningful ways, well before they get their first job.

Introducing American Heritage Credit Union Youth Accounts

At American Heritage Credit Union, we're proud to offer Youth Accounts that can support your child's journey toward financial independence. Our accounts are designed for children and teens, and they offer a fun and safe way to help them build good money habits early on. With options available for kids as young as 5, our Youth Accounts teach essential financial skills that will benefit your child for years to come.

We believe in setting kids up for success. That’s why we also provide workshops, fun in-branch teller interactions, and the opportunity to open an account of their own. By incorporating real-life, age-appropriate experiences, we help kids learn how to manage money confidently.

Give your child a head start with one of our five Youth Accounts, designed for different age groups. Choose the account that best fits their needs and start building healthy money habits today. Plus, if you're looking for a way to save for your child's future, we offer educational savings accounts. Parents who meet income requirements can contribute up to $2,000 per year per child, tax-free.