Library of Congress Federal Credit Union

Parenting comes with a lot of responsibilities. Yes, there are diapers to change and “talks” that must happen, but there are also financial checklists that, if you start now, can help you and your child later. Let’s look at some of those money items and how to implement them for your newborn, child, tween, or teen.

Always be Honest
No matter the age, always try to be straightforward with your child about money. Some experts suggest allowing children to be part of the conversation and slightly impact the family budget. Some of the items to share with your child include:

• Household income, including how much you make with secondary jobs and side hustles.
• Monthly expenses, including utilities, mortgage or rent, car payments, debt payments, as well as insurance, taxes, and more.
• Savings and spending should illustrate how much is set aside for vacations and emergencies as well as how much is spent on items outside household expenses (eating out, after-school sports, etc.).

New Parents
Expecting your first or next child means updating your medical insurance, building an emergency savings account (for those just-in-case moments), as well as updating your will and beneficiaries. This is also a good time to start a college savings account. Choose an account that allows them to use the money for a four-year college or a trade school. 

Parents of Young Kids
Help them identify coins and paper currency. Also, show them how shopping works with some at-home playtime. Want to really give them a solid financial base? Let them help comparison shop at the grocery store (based on price and quantity).

Those with Tweens
This is the perfect age for a first checking account with a debit card. If your tween has an allowance, transfer the money to their account and show them how to budget that money for the things they want and need. Introduce your tween to the concepts of spending, saving, giving, and investing.

Parents with Teens
As your children inch toward adulthood, building credit is essential. This can start with a low-limit credit card. Show them how to use the card and pay off the full amount every month. Those on-time payments can build credit over time. If they haven’t already found a part-time job, help them get one. Or encourage them to treat school and sports like a job. Additionally, teach them about retirement planning, how to pay bills, and how to do their taxes.

Stories From The Stacks Is Designed For You

The Stories from the Stacks blog is for anyone interested in advancing their financial life story. From financial challenges and advice to tips for a better relationship with money, each one is designed for you. Let us know what topics you’d like us to explore next!