One of the most fundamental financial lessons your kids are going to have to learn is about how you work for your money.

Do your kids understand that every time you pull out a wad of bills or swipe a card to pay for a purchase, that money is directly linked to time you put in at work?

Do they realize all of your money is earned through hard work?

Here’s how to make sure your kids – at any age level – understand this concept.

This month’s goal: Teach your children that money for purchases, whether it’s paid through cash or a card, is earned through hard work.

Pointers to cover:

  • Money is earned through work.
  • Every dollar spent is time you spend working.
  • Any method used to pay for purchases comes from the same source.

Conversation Starters

Kids under age 9:

  • What do you think mom/dad does all day at their job?
  • We work to do what our bosses want and need. How do you think our bosses reward us?
  • When we spend money for pizza, groceries, toys, or movies, where do you think that money is coming from?
  • This is mom/dad’s paycheck from work. When we give it to  State Department Federal Credit Union (SDFCU), we have money to spend. Why do you think we put the paycheck in our account at SDFCU?
  • When I swipe my credit/debit card, how does that pay the store owner? Where is the money coming from?

Kids over age 9:

  • Why do you think people work?
  • Do you think people who work harder for their money spend it more carefully?
  • Would you still want that (article of clothing/toy/gadget) if you had to work for it?
  • If you had the choice to work 16-hour days for double the salary of an 8-hour day, would you take it? Why or why not?

Online Tools

To help reinforce what you have taught your children, SDFCU offers The Coindexter Club, an interactive youth savings program that teaches children how to earn, save, spend, manage, and invest money. Through games online, colorful newsletters by mail, and more, your child will be immersed in an exciting world designed for fun and education.

Accounts for Kids

To help you teach your children how to manage their money, SDFCU offers minor and custodian accounts.  The minor accounts are set up to allow the minor the ability to manage their money on their own. However, our custodian accounts allow you the guardian the ability to manage all aspects of the custodian account and turn the account over to the minor at the age of 18 or 21.

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