Guest Blog: Stephanie St Thomas, Financial Wellness Manager

April is Financial Capability Month, a time dedicated to empowering individuals and families with the knowledge and confidence to make smart financial decisions. Here at Chartway, we think it’s the perfect time to start educating youth about finances – you’ll make the biggest impact on your kids’ financial confidence by starting early.

The Importance of Starting Early

Money is an essential part of life. We use it for many everyday things like utilities, food, clothing, and so much more. When you teach kids about money – smart saving and smart spending – as early as possible, you’ll help them become financially independent and set them up for financial success as they get older.

Research from the University of Cambridge found that money habits in kids are formed by the time they’re seven years old. Whatever they observe, whatever they’re included in, and whatever they practice when it comes to money early on will be what shapes their money habits in adulthood.

Learning by Observation

Kids are keen observers. Their eyes are always watching, and their ears are always listening. That’s why, it’s important to think about how we handle money, especially when our kids are around. As adults, how we talk about money, how we decide what to buy, and how we react to financial situations play a part in shaping their future financial behavior. Consider the conversations you have with partners, spouses, family members, and friends when it comes to money. If conversations are negative, you may be sending an unintentional message that money is a bad thing.

Learning by Inclusion

Kids often participate in various financial tasks alongside their parents or other adults. Although they may not understand the basis of what they’re witnessing, they may naturally pick up your habits. Some purposeful ways to include your children are through:

  • Grocery shopping – While at the store, teach kids how to compare prices of different brands and products, look at unit costs and sales prices, and decide when it makes sense to splurge.
  • Trips to the credit union – Bring your kids on trips to the credit union or any other financial institution you use, and familiarize them with making withdrawals, deposits, and various products and services.
  • Talk to children about money – Parents may go through financial challenges that are stressful, and your kids sense when something is wrong. For that reason, it’s important for you to proactively communicate with your children, in age-appropriate language, to reassure them that your family can weather the storm. For example, if they were previously receiving an allowance that can no longer be sustained, have an open and honest conversation with them about the situation. Children can be understanding and may want to contribute to finding a solution. By sharing your family's financial struggles with your children, you help them cultivate valuable life skills such as resilience, perseverance, and resourcefulness.

Learning by Practice

When practicing a skill, kids can explore their feelings about it. For example:

  • If they’re budgeting for a toy, discuss how they feel about different ways of budgeting or, if their feelings change about that toy, how they may want to save for something else instead.
  • They can develop a sense of self-discipline and learn not to spend all their money on one thing because there will be other things they’ll want.

You can support your kids in practicing money management skills in various ways:

  • Be there for support – keep the door open for communication.
  • Don’t direct what happens – let them experience the outcomes of their decisions.
  • Let kids make mistakes – learn from them and improve.

Click here for fun ideas to teach kids about money at every age.

Building Good Financial Habits with Youth Accounts

With Chartway’s youth accounts, kids and teens can start their financial journeys and build good financial habits with hands-on learning experiences. For example, our Youth Certificates are a great way to introduce kids to saving and bring up the importance of long-term financial planning. What makes our certificates special is they allow for ongoing deposits throughout the chosen term. With competitive rates, kids have an opportunity to save more and earn more with dividends.

Teens and young adults are also given more independence when it comes to their finances. You’ve provided your kids with great financial advice throughout their lives, and this increased independence will allow them to apply it – but they’ll still need you as a trusted advisor to provide supervision, guidance, and feedback to navigate finances successfully. A Chartway Student Checking account is a great tool for teens ages 13 and up, with amazing benefits like no fees, a debit card, and Online & Mobile Banking. Your teen will have the freedom to navigate and manage their spending, while you, as joint owner, can ensure they’re making good choices. Plus, they can earn money for good grades through our student rewards program!

Make Learning Fun with Zogo

Chartway has teamed up with Zogo®, an interactive digital platform which offer kids a fun and engaging way to strengthen their money skills. Through gamified bite-sized lessons, interactive quizzes, and daily trivia games, they’ll learn to save, spend, and manage their finances wisely – all while earning virtual coins they can exchange for real-life rewards, like gift cards to their favorite stores. If you’re ready to help them turn knowledge into rewards, download Zogo® today and use the code Chartway to get started.

From their first savings or checking account to navigating finances as they grow, Chartway is here every step of the way. Let’s work together to make sure the kids in our lives have a healthy relationship with money and get them ready to tackle the world of finances head on!