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August 21, 2023

Building a Strong Foundation: Financial Literacy for Kids 

In a world where financial decisions play a crucial role in every aspect of our lives, teaching children about money management from an early age is an essential investment in their future. At Citizens First Bank, we are committed to empowering the next generation. We understand the importance of equipping kids with the knowledge and skills they need to make informed financial choices. We’ll explore the significance of financial literacy for kids and offer practical tips for parents and educators to help advocate for this essential life skill. 

Why Start Early?

Just as we teach our children the ABCs and some basic everyday life skills, it’s equally important to instill a strong foundation in financial literacy. If we introduce concepts such as saving, budgeting, and responsible spending. This can significantly impact a child’s financial behavior as they grow and by teaching kids about money management, we are going to be setting them up for a future of successful financial independence.  

The Basics of Financial Literacy for Kids: 

Understanding Money: Introduce the concept of money and its various forms, such as coins, bills, credit cards, debit cards, e-commerce, and cash apps. Teach them about different denominations and their values. 

Earning and Saving: Teach children about the value of earning money through allowances, chores, or part-time jobs. Encourage them to save a portion of their earnings, promoting a sense of discipline and a feeling of accomplishment. 

Budgeting: Introduce the idea of budgeting by helping kids allocate their money for different purposes. Teach them to prioritize needs over wants and make mindful spending decisions. 

Needs vs. Wants: Help kids distinguish between essential needs and personal wants. This understanding lays the groundwork for responsible spending habits. 

Setting Goals: Teach children the importance of setting financial goals. This could be saving for a new toy, a special outing, or even long-term aspirations like higher education. This is the easiest way to teach savings goals. We recommend being the keeper of your child’s money until you feel comfortable enough to give them that responsibility.  

Banking Basics: Introduce kids to the concept of a bank, savings accounts, and the role of interest in growing their money. Consider opening a child-friendly savings account to give them hands-on experience. Try our Kids Club! It’s a special savings account for children 16 and under, with the goal of teaching them good financial habits and the importance of saving. 

Tips for Parents and Educators: 

Lead by Example: Children learn best through observation. Demonstrate healthy financial habits in your own life and involve them in financial discussions if you feel it is age appropriate to do so. 

Hands-On Learning: Turn everyday activities into opportunities for learning. Involve kids in grocery shopping, setting a budget for a family outing, or even playing money-related games. This will reflect in good habits when they are given the opportunity to handle real wages.  

Open Conversations: Create a safe and open space for discussing money scenarios and situations that arise. Answer their questions honestly and in an age-appropriate manner. 

Use Technology: Technology is one of the best tools we can use in 2023. Utilize educational apps, online resources, and interactive games to make learning about money engaging and fun for your kids. 

By imparting financial literacy to kids, we are not only equipping them with practical skills but also fostering a sense of responsibility, independence, and confidence. At Citizens First Bank, we’re dedicated to the financial well-being of our community. We encourage parents, educators, and caregivers to prioritize financial education for children. Together, we can ensure that the next generation is well-prepared to navigate the complexities of the modern financial landscape. 


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Holmen, WI 54636  
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Sparta, WI 54656  
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