Teach your kids dollars and cents

If you’ve been meaning to talk to your kids about money, now is the perfect time to start. Take a look at the tips below to help build your kid's financial literacy skills. 

There’s no better way to explain saving money to a child than to open an account in their name.

Viriva's Youth Savings Account 

Have your children make purchases

Lesson: Money is used in exchange for goods and services.

Purchasing something is perhaps the most direct way to understand how money works. Therefore, it’s a great opportunity for your children. Try including them the next time you make a purchase.

Whether it’s at the supermarket or movie theater, give your kids cash to hand to the cashier, and then have them collect and count the change. (Note: This works best for cash purchases. Using a card may be a little too abstract.)

Open a savings account with them

Lesson: While piggy banks are cute, savings accounts are the best option for stashing your cash.

There’s no better way to explain saving money to a child than to open an account in their name for this specific purpose. At Viriva, we offer Specialized Savings Accounts that are designed just for kids and teens. It might be tempting to save time and do it online, but take your child in-person to your financial institution.

Show them the physical building, point out the ATM, and have them meet the people behind the counter. Reinforce the roles that financial institutions play in managing your money. After the account is open, hatch a plan together for making regular contributions to it.

Inspire them to start a business

Lesson: Money is earned through work.

There’s a reason why lemonade stands have stood the test of time. These micro-businesses represent many children’s first exposure to earning money. If lemonade’s not their thing, encourage them to offer pet sitting or yard work to your neighbors.

This article was brought to you by Balance, our financial education partner.