Parents can train kids for financial success

Parents can train kids for financial success

When was the last time you thought about money? Chances are, it was probably today, since most adults deal with money — in one way or another — on a daily basis. We pay bills and buy groceries. We consider money when weighing job opportunities, determining where we’ll live, and when, or for some, if, we might be able to retire. 

We are faced with financial decisions constantly. Yet the vital skills of money management, budgeting and saving are often missing from the curriculums at our children’s schools. It’s one of the reasons why National Financial Literacy Month, observed each April, and the American Bankers Association’s Teach Children to Save Day on April 24, are so important.

Few states require financial education courses for high school students, which often leaves our young people woefully unprepared when it comes to understanding finances. 

When 2,459 students aged 15-18 participated in a test of financial literacy standards last year, more than half scored at or below 69.9 percent, the equivalent of a D+. And yet, a Harris Poll Financial Literacy Survey found that of families who have had discussions with their kids about money, more than half of those discussions were initiated by the kids. 

This tells us two things: Our kids need to know more about money, and thankfully, our kids actually want to learn more about money.

So what should you do to help prepare your kids for a successful, healthy, lifelong relationship with money? Here are four things you can talk with them about now.

1. Help your child establish a savings account. 

The sooner your child makes saving a habit, the better, and the more likely it will become a habit that lasts into adulthood.

2. Help your child to create a budget.

Budgeting is one of the key components for financial success. Whether you’re helping a 10-year-old create a budget for his $10 allowance or a 17-year-old create a budget for the weekly paycheck from her part-time job, if your child understands — and lives by — the concept of budgeting, it’s a significant step in preparing him or her for the larger budgets they will need to manage later in life. 

3. Help your child understand the difference between needs and wants. 

It’s OK for your child to spend money on those things that are “wants.” The idea is for them to be aware of the balance between the two, so that spending on the “wants” isn’t excessive. This lesson can be particularly important to help your child understand, since it is one that many adults often struggle with as well.

4. Help your child to set financial goals. 

Whether it’s having enough money to buy a new gadget, the latest pair of sneakers or even a car, helping your child establish a plan to reach that goal — and celebrating the moment they achieve it — can be one of the greatest financial teachers. 

On Friday, April 24, volunteers from Wells Fargo and other banks across the country will visit classrooms and work with young people as a part of Teach Children to Save Day. 

It’s an important first step toward encouraging financial education, and Financial Literacy Month is the perfect time for parents to continue the conversation at home. Look for books on the topic of kids and money, or talk with your local banker for suggestions. 

You can also check out Wells Fargo’s fun, interactive and free Hands on Banking  program. The online curriculum is easy to use and lessons are specifically tailored by age-group. (There are lessons for adults as well.) The Wells Fargo children’s financial success resource center also offers important information.

These are just a few of the ways you can get started. Whichever methods you choose, start now. Your child’s financial future is at stake. Getting them on the road to financial success now can increase the likelihood that the ride has as few bumps as possible.  

Taylor Neal is Wells Fargo’s Homer store manager. He can be reached at 235-8151 or   

More in News

Judith Eckert
COVID-19 patient says monoclonal antibody infusion saved her life

Antibody infusions highly effective in reducing risk of hospitalization, according to FDA trial ..

Borough School Board election

On Tuesday, Oct. 5, elections will be held for Homer City Council,… Continue reading

Kenai Peninsula Borough Assembly election

On Tuesday, Oct. 5, elections will be held for Homer City Council,… Continue reading

Homer City Council election

On Tuesday, Oct. 5, elections will be held for Homer City Council,… Continue reading

A proposed Alaska Legislature redistricting plan adopted by the Alaska Redistricting Board on Thursday, Sept. 9, 2021. Under the plan, a new District 6 is formed out of District 31, with the northern line ending at Funny River. Fritz Creek is moved into a new District 5 formed out of District 32. (Map by Alaska Redistricting Board)
Alaska redistricting board adopts draft maps for comment

(AP) — The board tasked with rewriting Alaska’s legislative boundaries based on… Continue reading

Janie Leask, a Homer resident, spoke in support of the new multi-use community center during Monday night’s city council meeting, stating the need for community recreation is vital.
Council moves forward with HERC plans

After years of discussions and planning, the Homer City Council is quickly… Continue reading

Christie Hill prepares to play “Taps” during the 9/11 memorial service on Saturday. (Photo by Sarah Knapp/Homer News)
Homer honors lives lost during 9/11

The Homer-Kachemak Bay Rotary held a Sept. 11 memorial ceremony at the… Continue reading

Most Read