Education

Teach Your Children to Bank

Once children start asking for things, parents need to take the time to instruct their children that money doesn’t grow on trees.

Jake Jones Jul 8, 2013

According to the experts, the sooner your children understand the concept of money, the more responsibly they will manage their savings as they grow up. Once children start asking for things, parents need to take the time to instruct their children that money doesn’t grow on trees.

Here are four tips on how to prepare your children to bank responsibly in the 21st century.

1. Open a Kid Savings Account

CNN® encourages parents to teach their children to save money as soon as your kids are old enough to understand the concept of earning money with work. Children will understand the pitfalls of instant gratification if you can help them to save their money for a new toy or video game. Zions Bank Kids Saving Accounts offer $0 minimum opening deposits and have no monthly maintenance fees. Instilling this value in your children will prepare them to save for their first car, college and independent life.

2. Learn How to Bank Online

To successfully manage your money in the 21st century, online banking is a must. Zions Bank offers 24-hour access to accounts. Use the online banking features to teach your children how to use checking and savings accounts. Review your children’s purchases together and help them to transfer excess funds to their savings accounts.

3. Debit vs. Credit

Before your teenager leaves the house for college, make sure he or she has a solid understanding of the difference between debit and credit cards. Far too often young people leave home without understanding the elementary functions and consequences of credit cards. Help your children to use their credit card for large purchases so they can learn the importance of making their monthly payments on time. Helping your children understand credit card debt at a young age will instill fiscally responsible habits in your children as adults.

4. Enroll in Mobile Banking

Mobile Banking enables users to manage finances on the go. More and more teenagers own smart phones and possess the ability to check balances, make transfers, look up funds and find ATM locations with a simple app. Mobile banking  can help your children stay up-to-date on their financial situation and avoid over drafting.

As more and more families suffer from insurmountable credit card debt, make sure you take the steps to teach your children the importance of money management before it’s too late. The 21st century offers a wide range of learning instruments and technologies that you can embrace to ensure fiscal responsibility for your grandchildren.

Sources: CNN

The information contained herein may not represent the views and opinions of Zions Bank or its affiliates and is intended for informational purposes.  It is presented for general informational purposes only and does not constitute tax, legal, investment or business advice.

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