As the weather gets warmer, we’re reminded that summer break is just around the corner. After schools let out, as a parent or guardian, you may be thinking “How do I entertain my kids all summer?” The summer break is a great opportunity to begin teaching financial skills and instill good money habits at a young age. By doing so early, kids will better understand the essentials of spending and saving money, leading them to financial success in the future. Below are a few tips on monetary education for your children this summer.  

Saving 

Teaching our youth about saving money is one of the most important financial skills they will use and build upon the rest of their life. For younger kids especially, introducing a piggy bank, glass jar, or even a clear cup can be a visual and incentivizing way to learn the process of saving money. From the time school is out, to the start of the next school year, challenge your kids to save money. At the end of the summer, total their savings so they see how a little over time adds up. 

For middle school and high school students, help them start the process of saving for after graduation. Whether the savings go towards college or their new adventure after high school, they will understand that saving is important for their future goals and will become a routine. For older kids with summer jobs, saving their earnings is a leeway into budgeting their full-time income one day. Encouraging a weekly or monthly contribution to their savings will prepare them for their future beyond high school. 

To help make saving easier, Banterra offers a SmartKid Savings account to encourage kids to save more. With ten dollars, the account can be opened, and earn interest if that minimum is maintained. There is no monthly fee if they are not over three withdrawals per month. Once the account holder reaches 22 years of age, the account switches over to Banterra’s Preferred Savings account, along with its terms. To learn more about our personal savings options, including terms and conditions, website, or read more on our blog. 

Budgeting  

Once your child understands the concept of saving money, you can begin to introduce budgeting, starting with defining the difference between wants and needs. Doing so will help them build the foundation of their budget and allow them to determine the funding they should allocate to priority versus non-priority spending. Budgeting creates smart spending habits and decisions in the future.  

Setting a budget is important, even for your children.  You may find it helpful to use a template to help them map out a customized plan. Here are a few helpful budgeting templates that you can use with your kids this summer. 

Earning Money 

Income is the leading factor in what makes saving and budgeting happen. Chores, such as cleaning or putting away the dishes, or having a part-time job, for example, lawn care, babysitting, or at a local business, are a great way for them to actively learn how to factor income into their budget. In addition to earning money, they will grasp the idea of work ethic and skillsets that will benefit their future careers. 

As your family prepares for all the fun-in-the-sun activities, don’t forget to incorporate financial literacy into your agenda. If you have any questions about financial literacy or our Banterra SmartKid Savings Accounts, please contact  our team, we are here to help you!