7 Financial Literacy Tips for Parents to Put into Place with Kids Over the Summer

Photo by Towfiqu barbhuiya

The summer is a great time to teach about money and life skills while kids are out of school. The following are a few tips from Matt DeFinis, in charge of the Money Masters Financial Literacy program at Oxford Bank.

1. Let your child earn a small allowance and have age-appropriate conversations about spending and saving
2. Start a joint savings account with your child and talk about money management. Bring your child to the bank and describe to them the different roles and ways that banks can help with money
3. Help your child to create budget buckets for spending, expenses (school supplies, snacks), savings
4. Teach kids about “wants” and “needs,” and that it’s good to aspire to want other things, but that addressing one’s needs should take priority
5. Consider a larger purchase that your child might aspire to save up for over the summer. Sit down to plan how much your child would need to save per week (establish age-appropriate savings goals for younger and older children and, for teens, the GreenPath car loan calculator) to purchase the item. Consider making a big “Goal Jar” for younger kids to see how savings can grow. Do some comparison shopping to plan for the purchase.
6. Encourage children to set aside a small amount to give back, such as 2-4%
7. For older kids, coach them on opening their own credit card and paying balances back in a timely manner to build credit. Missing even one payment can influence credit

For more tips, visit Oxford Bank’s free Money Masters Financial Literacy resources www.oxfordbank.bank/learn/financial-literacy