It’s never too early to teach your kids about financial responsibility.
Pamela Cotton with Austin Telco Federal Credit Union joined Studio 512 Host Rosie Newberry to help us learn more about youth financial literacy.
What are some ways parents can prepare their kids to be financially responsible?
“Parents should make the most out of teachable moments. Look for opportunities in your day-to-day interactions with your kids to slip in a money lesson. You can also provide hands-on experience. For instance, if you’re out shopping together, you can talk about your own shopping choices or why you’re delaying a purchase. You can also have your teenager make the grocery list for the week. At the grocery store, they’ll realize for themselves how big a chunk of the family budget goes toward groceries.”
Is there a certain age parents should begin introducing their kids to finances?
“Get your kids started with a savings account sooner rather than later. You can help your kids develop lasting financial habits by teaching them the power of the dollar and showing them the importance of savings at an early age. Austin Telco can help your kids and teenagers open their first savings and checking accounts. We are actually launching a new youth account soon called the Telco True Youth Account. Parents will have the opportunity to help their kids and teens get their first debit card with limitations and account alerts so parents can monitor activity.”
Are there differences in teaching younger kids and teenagers about financial responsibility?
“For younger kids, you want to go over needs and wants to begin establishing the difference between the two. For older kids, you want to discuss budgeting and future expenses they will endure as teens and young adults, like college expenses. Parents can teach their older children about the dangers of credit card debt and how to use credit cards in a way that will help them build credit and not put them in debt, like paying the balance in full every month. It is also key to emphasize the importance of saving at all ages.”
To learn more about Austin Telco’s True Youth Account or any of their other products and services to help get your kids financially fit, visit their website at ATFCU.org.
This segment is paid for by Austin Telco Federal Credit Union and is intended as an advertisement. Opinions expressed by the guest(s) on this program are solely those of the guest(s) and are not endorsed by this television station.