If you have children, the day will come where you’ll need to teach them about loans, credit cards, and debt. The longer you wait, the more chance there is that they could fall victim to high-interest rates and unfair loan terms later down the line. But by teaching financial lessons early on, you can set your kids up for a lifetime of success. 

How to Introduce Your Kids to Finances 

Children’s brains are a lot like sponges. And the sooner we start teaching kids about loans, credit cards, and debt, the better. Right now, 1 in 5 adults says they received the opportunity to learn about finances at a young age. DEXSTA hopes to improve those odds. 

It’s a good idea to start teaching your kids about money by helping them open a classic lemonade stand or collect their savings in a piggy bank. From here, they’ll begin learning basic lessons on how to earn money, what the value of a dollar means, and the best ways to manage it.

Grade School and Their First Savings Account

Eventually, your child is going to be too old for lemonade stands, but not old enough to get a real job. That’s where chores come in. Whether it’s taking out the trash, mowing the lawn, or doing the dishes, your child can earn themselves a weekly allowance. When they’re ready, take those old piggy bank savings and well-earned allowance and help them open their first DEXSTA savings account. 

Helping Your Teen Stay Financially Independent 

By now, your teen may be earning money through an actual job. A good plan is to write down attainable saving goals with your teenager. You can determine how much they should be saving from every paycheck. If they started saving early, they might be ready to buy their first car or start paying for college tuition. Or, they need to borrow more money.

Opening their first DEXSTA credit card or taking out a loan could be the next best route to take. And as the old adage goes, “with great power comes great responsibility.” Make sure you sit down with your teenagers and soon-to-be college students and discuss their first credit card and loan. Whether it’s teaching your kids about interest and monthly bills or enlightening them about the United States student debt problem, steering your teen down the proper path can go a long way towards achieving financial freedom.

Conclusion

DEXSTA partners with institutions like Banzai to increase the financial literacy of our valued members. Fortunately, their programs aren’t just for teaching kids about their finances. They offer programs for children, teens, and adults! After all, everyone could always learn a little more about loans, credit cards, and debt. Contact DEXSTA today, and let’s see what we can do.