How To Center

• 2009 Tax Season
  • TurboTax via Internet Banking
  • Tax Forms and Q&A
  • Tax Refund Direct Deposit
• Apply for a Loan
• Balance your Checking Account
• Buy a Car
• Create A Budget
• Find a Notary
• Get Financial Counseling
• Get Traveler's Checks
• Make a Loan Payment
• Protect your assets
• Raise Money-Smart Kids
• Set Up Direct Deposit and e-Services
• Use a VyStar ATM
• VyStar Switch Kit

How to Raise Money-Smart Kids

Every year, American children receive over $15 billion in allowance, gifts and wages - reason enough to start teaching children money management and consumer skills at a young age. The following tips can make the difference between a child who grows up to be financially secure - and one who isn't.

Teach by example: The best way to instill good financial habits is by "walking the talk." For instance, when you go shopping, include your kids in the process - planning, budgeting, and comparing prices and quality. If they urge you to buy something that is over budget, explain that spending more on the item you're purchasing today is not as important as saving up for something else you need or want in the future. You may also show them the special section – just for kids – in our quarterly Your Money magazine.

Use KIDS CENTER:: A free learning tool right here on our website that is designed especially for VyStar's future money makers. At VyStar we think financial literacy should begin early on.  Written by youth for youth, our KIDS CENTER will help students – and their parents – learn about money matters and life issues through colorful stories and interactive games for all ages. KIDS CENTER is safe and fun with new material introduced regularly to make it interesting. Kids and teens can visit directly from our home page, anytime. Or, add it to Favorites on your computer to make access even easier.

Live within your means: Children who learn to prioritize their spending learn the most valuable money management lesson: to live within their means. Reinforce the message by not jumping for the credit cards or giving extra money just because your children ask. When kids want an expensive "status" item, like hundred-dollar athletic shoes, consider having them pay the portion of the price that exceeds what you think is reasonable. They'll appreciate the item more and may think twice about paying that much when they outgrow this pair in six months. If you choose, go ahead and lend money, but treat it like a bank loan. Charge reasonable interest and set a time frame for repayment - it will teach them how loans and credit in the real world truly work.

Encourage savings: For your sake and theirs, encourage your children to make saving a fixed category in their spending plan. Discuss goals and calculate how much should be put away each month. Break down savings into long-term, for college or a car, and short-term, for a new bike or a senior trip to Europe. If you see your children about to make a mistake in spending their allowance, let them. Better to learn on a small scale now, than lose money with big mistakes later.

Note: VyStar offers accounts for teenagers, 13 to 18 years old.  With parents' consent, our VyTeen account offers a debit card to get cash at ATMs, access to Internet Banking, and a special CD that will allow them to save in increments as small as $25. Open a VyTeen account for your teen today!

It's never too early (or too late) to develop healthy financial habits. The rewards of wise money management are the same for adults and children alike - a greater appreciation of what you have, a sense of empowerment when you reach your goals, and long-term financial security.

This information is provided by BALANCE at www.balancepro.net – offering free financial counseling to members.

Your Money Magazine
KIDS CENTER