GRAND RAPIDS, Mich. (WOTV) April is National Financial Literacy Month. Money is a tough thing to explain to children, but teaching them how to save can never start too early.
Scott Stenstrom from Fifth Third Bank says although people say they know the right things to do, they’re still not doing them. For example, you should have six months’ worth of income in savings for emergencies, but only two third of people have started that.
Stenstrom says parents should live by example. Teach kids about saving by opening a savings account for them. Help them understand that going into a bank and getting to know your banker is a good thing. Help them set a goal and develop a plan for them to understand that they have to do something to earn money.
More tips from Fifth Third
Concepts to teach your kids
- Save, save, save – start saving money no matter the amount and make it a habit
- Reward goal setting – saving money should be fun and rewarding
- Household savings plans – match your kids’ savings. For every $1, put in $0.50
Concepts adults need to know
- Understand the power of credit – it isn’t bad, it is how you use it
- Everyone can afford a financial advisor – make sure you leverage your banker
- Be active with your finances – review statements, monitor your credit, know your score