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    Saving for a Big Dream: Helping Children Prepare for their Financial Future

    As a child, how did you learn about money? Were you given an allowance for doing chores around the house? Tasked with getting a summer job to help save for college? For some, it was encouraged to talk openly about money and finances in the home; however, for others, they may have learned about savings and spending the hard way.

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    In honor of National Credit Union Youth Month, it’s important to encourage all parents to look to the future and empower their children to develop healthy financial habits. Parents are the money model for their kids and its important to be transparent and communicate about finances in a non-threatening way.  

    So how can we raise financially healthy children? Try these tips to help your child develop good money habits at an early age:

    1. Start an allowance. Paying your kids for doing certain jobs or chores around the house is a great way to teach them how to save and spend what they’ve earned. Encourage the 1-1-1 method for saving, spending, and giving; if your child was given $9.00 for their allowance (or anything else), have them put $3.00 in a piggy bank for saving, $3.00 in a wallet for spending, and $3.00 in a jar to give to charity. As the kids get older, consider paying interest on their savings to teach them the value of compound interest.
    1. Brainstorm ways your child can earn money. The more money they earn, the more they save! Talk to your child about other ways they can earn money. This can range from doing odd jobs for friends and family, to becoming an entrepreneur and starting a lemonade or snack stand in the neighborhood! 
    1. Learn the value of credit. If your child is looking to make a bigger purchase than they can afford, consider this an opportunity to teach them about credit. Plan to have them borrow the money from you but talk to them about charging interest and draw up an agreement. Ask them to make payment coupons for their payments.
    1. Enroll in a savings program. We live in a world of technology, so why not make the most of it when it comes to preparing your kids for their financial future! Money Mammals Kids Club teaches children to share, save, and spend in a responsible way, preparing them for their financial future. 
    1. Out of sight, out of mind. Like adults, children too will be tempted to spend their money if they see it all the time. If your child is tempted to spend their savings, encourage them to hide it from themselves so they aren’t reminded of it daily. But make sure they remember where they stashed it! 

    National Credit Union Youth Month is a perfect time to help teach children and their parents the importance of planning for the future and saving for it. Stop by your local Telhio Credit Union during the month of April for special youth account promotions and other activities to help your child prepare for their financial future. 

    Learn more about Telhio by visiting telhio.org

    This is a multi-part sponsored series presented with paid support by Telhio Credit Union.

    Telhio Credit Union is open to anyone who lives, works, worships or goes to school in Franklin, Fairfield, Delaware, Licking, Madison, Pickaway, Union, Hamilton, Warren, Butler and Preble counties. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers nine branching offices throughout Central and Southwestern Ohio and nearly 4,000 shared branching locations nationwide. Federally insured by NCUA. Equal Housing Opportunity. NMLS #251831

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    Alex Noga
    Alex Noga
    Alex Noga is currently the Marketing Coordinator for Telhio Credit Union and is responsible for Telhio’s internal and external communications, marketing, and social media. He has worked in the financial industry for several years and loves representing a not-for-profit organization committed to helping people achieve their financial dreams.
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