Talking to Children About Money: Building Smart Habits Early with Peninsula Federal Credit Union

Children begin forming financial habits at a young age, often by watching the adults around them. By having open, age-appropriate conversations, you can help your child(ren):

Talking Points:

Ages 3 - 7

            “Money helps us buy things we need and want.” (what is a need vs a want)

                        NEED: Food, shelter, clothes vs WANT: Toys, candy, games

            “We can save money now to buy something we really want later.”

            “We can’t buy everything, so we need to choose what matters most.”

Ages 8 – 12

            “If you spend all your money now, you won’t have any to spend later.”

            “Savings a little at a time adds up.”

Use the analogy of a bucket – adding a little water daily fills it up, just like saving small amounts adds up.

            “Let’s make a plan for your money.”

Ages 13 – 19

            “How will you mange your money each month?”

            “What are your short-term and long-term goals?”

            “Let’s talk about saving vs spending vs borrowing.”

Use the 50/30/20 Rule: Teach them to split money into 50% needs (gas, insurance), 30% wants (make up, video game) and 20% savings.

The earlier these lessons begin, the stronger their financial future can be.

Use Everyday Moments

Turn daily activities into learning opportunities:

• At the store: compare prices and talk about value
• Paying bills: explain priorities and responsibilities
• Planning purchases: explain that planning means saving and overtime how that pays off

Let Them Learn by Doing

Hands-on experiences are key:

• Provide an allowance or chore-based earnings
• Encourage saving a portion of money received
• Allow room for small mistakes – they are powerful teachers

Encourage Goal Setting

Help your child(ren) set small savings goals. Whether it’s a toy, a game or a fun outing, working toward something meaningful teaches patience and discipline.

How Peninsula Federal Credit Union Helps Families

At Peninsula Federal Credit Union, we are committed to helping young members build strong financial foundations in a way that’s engaging and rewarding.

Youth Savings Opportunities

Teen & Kids Club

Earn Rewards for saving

Any Youth Member ages 0 – 17

Earn stamps for deposits:

• $5-$25 = 1 Stamp
• $26-$50 = 2 Stamps
• $50.01+ = 3 Stamps

Redeem full punch card for various local gift cards or $10 cash deposit

Youth Save to Win Certificate

A 12-month certificate that earns chances to win up to $500 quarterly 

             - Initial deposit is $10

             - Each $10 deposit earns entries into prize drawings

             - Maximum entries of 10 each month

             - Parent or Guardian must be joint owner on the account

             - Confidence knowing their money is safe and secure and growing

We Pay for Good Grades

Text a picture of your child(ren)’s report card or bring it to any branch and based on the grades, a deposit will be made into your child(ren)’s savings account. (Amount earned is based on each grade on the report card with a maximum deposit amount of $7.00 per report card.)

Gaps for Cash

A one-time $5.00 deposit will be made into your child(ren)’s savings account when you stop by a branch with your child(ren) and have them show off their missing tooth.  If you can’t make it into a branch you can send a picture of your child(ren) with their missing tooth smile.

Helpful Resources for Teaching Kids About Money

            Books for Kids

• The Berenstain Bears’ Trouble with Money by Stan and Jan Berenstain for ages 3 - 7
• Money Ninja by Mary Nhin for ages 4 – 10
• How to Turn $100 into $1,000,000 by James McKenna (with Jeannine Glista and Matt Fontaine) for ages 10 – 14

Being able to teach easy-to-understand tools that emphasize that saving now will make it possible to reach financial goals in the future and that it can be fun, will create lifelong habits.

To Review

Teaching children about money doesn’t have to be overwhelming.  Small, consistent conversations, paired with the right FUN tools, can make a lasting impact.

With programs like our Kids & Teen Club and the Save to Win Youth Edition, Peninsula Federal Credit Union makes it easier for kids to start saving early while learning valuable financial lessons along the way.

If you’re ready to help your child(ren) take their first step toward smart money habits, we are here to help you get started.

More information is available at Peninsula Federal Credit Union Teen & Kids Club - Peninsula Federal Credit Union

This blog is not on behalf of Peninsula Federal Credit Union.