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Financial Literacy Month is in April, just days away. To help prepare even the youngest savers, we have compiled several key tips to improve financial literacy for children. Citizens Bank & Trust is passionate about teaching the children in our communities about money, which is why we have several school “branches” located right inside the halls of a couple of our local schools!

With branches in Guntersville High School, Albertville High School, Guntersville Elementary School and Cherokee Elementary School, we hope to provide basic financial knowledge for our children, encouraging them to save from an early age. Because it’s never too young to learn about money.

 Young children

While very young children may not be able to grasp broad financial concepts, even preschoolers know how to count, which is, after all, the very first step to saving money.

• Save money in a clear jar

Letting young children physically see their money grow as they add dollars and cents to a clear jar is the best way to show them how to save. Talk to them about saving and make a big deal about their jar filling up.

• Explain that stuff costs money

While out and about with little ones, let them know that the candy in the grocery checkout line or the little toy they want costs money. Help them take some money out of their savings jar to pay the cashier at the store for the items they want in order to show them how using their money actually works.

 Elementary age and middle schoolers

By elementary school, children are old enough to have a better understanding of how money works and what it’s used for: Saving, spending and giving. In Guntersville, students at both GES and Cherokee can practice these real-life habits at the Cubcat branches of Citizens Bank & Trust, where they can make their own weekly deposits to bank-trained tellers from the high school into their account. Implement the tips below to encourage young savers while teaching them the basic building blocks of financial literacy.

• Introduce the value of money

A good first step to help young children understand what money is worth is with an allowance, particularly if it’s tied to chores that teach responsibility and a strong work ethic. Help kids understand that money is earned not given.

• Encourage kids to save

For items that exceed their allowance, help kids understand the concepts of delayed gratification and trade-offs by teaching them to resist impulse buys and learn about cost opportunity: If they buy this item, they won’t have the money to buy that other item. Allow younger children to build a habit of saving a small amount of anything they earn, including allowances and gifts, for bigger-ticket items they wish to buy.

• Stress the importance of giving

Teach children about generosity and giving. Once they start saving some money, show them the importance of helping others, whether it’s by donating to a church or charity of their choice, or even giving to a friend or neighbor in need.

Teenagers

By the teens, children should have a general understanding of how to save, spend and give money. Complicated concepts, such as debt and credit, are introduced and applied to real-life situations. Saving money from a summer job becomes more important with post-graduate life in the near future. Citizens’ Wildcat Branch at GHS and Aggie Branch at AHS are available in these high schools – and run by student School Branch Tellers – to aid students in their personal financial operations as they learn even more about the value of a dollar.

• Teach them how to make money

Encourage teens to get a part-time job in their free time in order to mold them into better savers. Make sure older kids are saving a portion of each paycheck and hold them responsible for their own expenses, like gas and movie tickets.

• Introduce teenagers to credit

Teach older kids about the importance (and danger) of credit cards by adding them as an authorized user on one of yours. By requiring them to pay back every dollar they charge, teens can learn to spend within their means. Don’t forget to teach the basics, such as how credit cards differ from debit cards. And use the opportunity to discuss how important it is to remain responsible with credit in order to avoid debt.

• Teach them contentment

In a digital age where comparison reigns supreme, teaching contentment to teenagers is important when dealing with money. They might not have a brand new car or go on the most lavish vacations like what their friends (or perfect strangers) are posting about on social media, but take care to let them know that the older vehicle they drive still works and the vacations they do get to take are still special and, most important, don’t throw their family into overwhelming debt.

As we begin Financial Literacy Month, we encourage you to take time with your kids about the significance and value of saving. Instilling financial literacy at a young age not only equip them with essential life skills, but also empowers them to make informed decisions about money management in the future. By fostering a culture of saving, we pave the way for a financially secure and resilient generation, poised to navigate the complexities of an ever-evolving economy with confidence and prudence.