What Are You Teaching Your Kids About Money?
According to a study by the Harford Financial Services Group, Inc., the majority of college students say they pick up most of their personal financial education from their parents, but less than half of students said their parents make a consistent conscientious effort to teach them. Another study from Capital One indicated 49% of teens are “eager” to learn more about money management and that they want to learn money skills from their parents, but only a small percentage of parents are taking advantage of everyday learning opportunities about money. Almost one-third of college students surveyed by Harris Interactive admitted they were not very well prepared for personal money management on campus their freshman year.
It is never too early to teach your kids about money management, but where do you begin? An easy way is by visiting the Money Basics page on Citizens National Bank’s website. View a brief slide show that focuses on learning how to set goals, develop a budget and start saving. Scroll to the bottom of the page for Sites for Kids which includes an interactive site called Budget Basics. Then check out the Overview for Parents and Teachers which provides links to tips for teaching fiscal responsibility and even economics lessons for teachers.
With 87% of teens reporting their parents are their main source of financial education, it is important that parents get it right in teaching their children about managing their money, paying bills on time and establishing a savings plan. One step in this direction is to have your student open a checking account. Citizens National Bank’s student checking account has no minimum balance and comes with a low limit Visa® CheckCard. For ages 14-18, this account must be co-signed by a parent and can be used as a learning tool as monthly you can review statements and activity with your child to educate them on where their money is going. For college-age children, we offer our Go Anywhere checking account. This mobile account features unlimited free ATM withdrawals and a Visa® credit card if the student qualifies so they can access their money while they are on the go and begin to build credit in their name. The minimum balance requirement is waived until age 23.
Financial education is an important step in becoming an adult and research shows those who have had financial education participate more often in retirement programs, make larger contributions to the program and have a much higher savings rate than others. Make sure your child is in this group by teaching them fiscal responsibility early on.