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Parents – Money Management Tips For Kids
It is critical that you teach your children smart ways to
handle money. Kids will benefit from learning good money habits at
a young age. Parents need to be good role models because your
children will learn from your spending and savings habits.
Grade School
$$ Money |
- Teach the value of dollars and coins.
- Show them what each looks like and how much each is worth.
- Show how to use money to pay for things at a store.
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| $$ Banking |
- Set up a
Minor
Savings Account at your bank.
- Kids will learn how to set up an account, learn about
deposits, withdrawals, account balances and interest.
- Understand that keeping your money at a bank is safe.
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| $$ Saving |
- Ask your children what they would like to save their money
for.
- Show them how an account balance will grow with each
deposit.
- Encourage savings by getting them a piggy bank.
- Set goals-try to save half of what you earn.
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| $$ Spending |
- Set spending limits and stick with them.
- Teach control - kids can’t have everything they want.
- Know the difference between needs and wants.
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| $$ Earning |
- Give kids an allowance for doing extra chores.
- Examples, rake leaves, mow lawns, shovel snow, babysitting,
cleaning their room, washing cars, delivering newspapers,
putting the dishes away.
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High School
In high school, your child will typically get their first
summer job. This is great time to open a
checking account for
your teenager. |
- Teach how to write checks, log activity in a check register,
reconcile a bank statement, how to locate and fix errors, and
the importance of avoiding costly overdrafts.
- Show how to use an ATM Card for deposits and withdrawals,
the importance of protecting a personal identification number
(PIN), and remembering to record ATM transactions in your
checkbook register.
- If your child has shown responsible behavior with an ATM
Card, you can consider getting them a Debit Card. Teach your
child that a Debit Card has more potential for fraud in the
event it is lost or stolen. Iowa State
Bank's SHAZAMChek Debit Card is subject to qualification.
- Each month help your child balance their checkbook, monitor
where they are spending their money and make sure the account is
in balance each month. Regular discussions about money will help
create healthy habits.
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Jump Start
Coalition
College
College is the time for young adults to start building a solid
credit history in their own name. You might consider a pre-paid
credit card or one credit card with a low minimum balance. Because
college kids are bombarded with multiple credit card offers, it is important to teach them how to use credit wisely. Likewise,
college students typically need to finance their education in part
with a Student Loan. Teach the importance of borrowing
responsibly. |
- Understand that while in college, students have limited
income. Live within your means. Don’t charge more than you can
payoff in one month. Develop a budget and stick to it.
- Limit credit card debt. Carry only one credit card. Payoff
the balance each month to avoid finance charges.
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Credit Card Do’s and Don’t’s |
- Watch “extra” expenses.
- Buy used books whenever possible.
- Work while you are in college. Working students are
generally better at managing their time and money and have an
appreciation for the cost of their education.
- Keep accurate financial records. Be sure to track your
monthly finances and keep copies of financial aid packages, tax
returns, loan documents and credit cards statements. Keep a log
of the calls you make to your financial aid advisor and student
loan lender.
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