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. According to WalletHub, Texas was ranked as the 25th most financially literate state, so we definitely have room for improvement in educating kids about finances. 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 TexasBank that can help your kids grow up into financially responsible adults.
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 kids savings account will help your child understand the concept of watching money grow overtime. At TexasBank, our kids savings accounts have no minimum balance requirements and offer competitive interest rates and free digital banking.
  • 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. 
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 free checking account and a savings account at TexasBank is a helpful way for teens to begin saving and managing money. You can also use our savings goal calculator to see how long it will take to save a certain amount of money.
  • College Savings: According to the College Board, the average cost of private college tuition is over $50K per year. 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. If you’ve been contributing to an education savings fund, tell your child how much you think you’ll have saved and if he or she is expected to contribute the rest. 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.
  • 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 $20 billion in 2020. Unfortunately, thieves know to target those who have not yet learned to protect themselves. Ensure your teens secure their digital banking accounts and store their credit and debit 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.

Teaching Money Management Skills to Kids & Teens
Money lessons can feel a bit like school, so to spice it up, consider adding some games or apps into the mix. TexasBank customers get a complimentary Greenlight app subscription and debit card. With Greenlight, you can:
  • Send money to your kids and teens.
  • Get real-time notifications of transactions and requests.
  • Keep an eye on spending and help your kids with budgeting.
  • Link your card to Apple or Google Pay for secure, contactless payments.
  • Choose where your kids can spend and set spending limits.
Financial Literacy is a Life Lesson
Whether you are parenting children or teens, financial lessons are important to prepare them for the real-world. To start your child off with their own bank account, contact TexasBank today or visit one of our branches in Central Texas, West Texas and the Dallas-Fort Worth area.