Back-to-School Banking Survival Notes: Talking to Your Kids About Money
Did you know that learning money management as a child is a huge predictor of adulthood financial success? According to a 2024 survey conducted by Fidelity Investments, 56% of adults said their parents never discussed money with them—and 82% of those said they wished their parents had done so.
How do you start discussing money with your child? It’s an understandably difficult topic, because talking to your child about how retirement and compound interest works is likely to get you a blank stare and a yawn. However, if you start with simple, age-appropriate conversations, you’re more likely to find interest and success.
Turn a Supply List into a Math Lesson
Before shopping, ask your child to look at the supply list and estimate how much they think it will cost. There’s a good chance they’ll underestimate just how expensive it is! Make sure to keep track of this number. Next, use the list and a digital shopping ad to copy down the cost of each individual supply item and have them add it up. Have them reflect on that original guess they made. If they receive an allowance, use that to put the cost of back to school into perspective.
Talk About “Wants vs. Needs” Using Their Supply List
When you take your child shopping with the supply list, go over what is most important. Do they need those fancy gel pens, or could they get by with generic ballpoint pens? Show them how buying a branded backpack might send you overbudget versus a plain backpack in their favorite color. This is the difference between needs and wants, and it can be tied together perfectly with the lessons above to reinforce age-appropriate financial literacy.
Set Up a Simple Savings Goal Tied to the School Year
Does your child have a job, or do you pay them for chores? A big “want” of theirs, such as a new video game or concert tickets, is a great way to teach an early money lesson about saving for their favorite things. Explain how savings add up to big things, even in initial small amounts. By teaching these things when they are younger, it’s likely to follow them into adulthood!
Mind & Money
At Educators, we offer a FREE widget within Online and Mobile Banking called Mind & Money that can help you in the process of teaching your child how to manage money. With it, you can reward your children for completing chores, getting good grades, meeting goals and more. Learn more about what you can do with Mind & Money by following the link above!
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