Teaching kids about money can be a challenge.
They may think you have an endless supply of cash and not understand the value of money. The state of Montana ranks 38 out of 50 states for financial literate states in the United States, with a total score of 60.44 according to WalletHub. Teaching financial literacy will not only give your children an appreciation for what you provide, it will also help develop a baseline for a successful financial future. Here are some simple money lessons for both children and teens from The Bank of Baker to help your kids grow up into financially responsible adults.
Money Management for Kids
Is your child begging you for the latest video game console or the hottest new toy? It’s important to use this as a way to teach valuable money lessons, including the importance of saving for what you want.
- The Value of a Dollar: Start your financial literacy lesson by choosing something your child wants to buy and explaining how much it costs. To truly learn the value of a dollar, ask your child to earn all or part of the cost. Depending on his or her age, this could come in the form of household chores, babysitting, pet sitting, or dog walking. Look for local social media boards that list these kinds of opportunities to help your child find an appropriate way of earning money.
- Teach Children About Saving Money: Encourage your child to save the money he or she earns. Putting money away into something tangible, like a savings account, will help your child understand the concept of watching money grow over time.
- Spending Money: Once your child has saved up enough money, it’s time to go shopping. This rewarding experience can help teach a valuable lesson and begin to establish lifelong, healthy money management skills.
Teenage Money Management
If you are the parent of a teenager, it’s important to regularly talk to your teen about money management and teach responsible spending and saving habits. Here are a few ways to help your teen understand how to manage money independently.
- Open a Bank Account: Is your teen interested in buying a car or going off to college someday? Both require savings and good money management skills. Opening a checking and savings account at The Bank of Baker is a helpful way for teens to begin saving and managing money.
- College Savings: According to the Education Data, the average cost of private college tuition is in MT is over $24,000 more per year than a public institutions. This is a hefty expense for any family, so it’s important to start the conversation early on. Estimate how much it would cost for your child to attend a private, public or community college. This is also a great time to teach your teens about how to find and apply for scholarships or grants and how student loans work. Try a college savings calculator to see if you’re on track.
- Protecting Cards & Identity: If you allow your teens to have cell phones, credit cards and/or social media accounts, it’s critical to teach them how to protect themselves from identity theft. Total identity fraud amounted to $47 billion in 2024. Unfortunately, thieves know to target those who have not yet learned to protect themselves. Ensure your teens secure their online banking accounts and store their credit cards in a safe place. They should also be vigilant about protecting debit card PIN numbers and their Social
- Security number. The more you teach them now about protecting their identities, the safer they’ll be when they’re out on their own.
Financial Literacy is a Life Lesson
Whether you are parenting children or teens, financial lessons are important to prepare them for the real world. If you’d like to speak with The Bank of Baker to open a savings account, please contact us to set up an appointment. We have been serving Montana customers for over 100 years.