Money. We love it, we hate it, but we need it whether we want to or not. So many kids graduated high school, go into the real world and learn very quickly that they don’t know much about money at all. They don’t know how to make it, keep it, spend it, or save it properly. I’ve compiled a list of things your kids need to know before they turn 18.
1: Open A Bank Account
Personally, I think they should have their own bank account whenever they start driving. Or if they start working before they drive, like babysitting & yard work, then start one then. They need a bank account to put their money in so it’s not burning a hole in their pocket so to speak. Because if it is there, they will spend it. You don’t necessarily have to give them a debit card if you don’t think they can responsibly spend the money. Or give them one strictly for emergencies.
2: ATM Machine Tutorial
Once they have a bank account, are driving and have a debit card, show them how to use an ATM machine. Sounds like common sense, but if they haven’t ever used one, it might be more complicated for them than you’d think.
3. Check Account Balances
Now that they are set up with their own account, they need to know how to check their accounts to manage their money. Luckily this is pretty easy now days. Almost every bank has an app, and more than likely your kid has a smart phone. Show them how to check their account balance and keep tabs on their spending. Wait a month and show them how to compare their income to spending.
4: Money Order
Show them how to fill out a money order. This may seem really old school, but you never know when it might need to be done.
5: Banks, Credit Unions, Saving & Investing Companies
Teach your kids the difference between banks, credit unions, savings and investing companies. They need to know the purpose for each of these type of companies and what they will need them for in the future.
Teach your kids how to properly file their bank statements. This is a great practice for them to start for when they file taxes.
7: Security Deposits
Tell them about security deposits, what they are used for, what they might need one for in the future.
8: Take Them Shopping
Take your grown kids shopping for necessities like groceries. Give them a budget and a list of what you need. Let them do the shopping with very little guidance. When they get to the checkout line they’ll see how well they did staying on budget, and they’ll learn the difference it makes every time you buy something that isn’t “necessary”. Take them clothes shopping. Give them a fixed amount of money to buy their new school clothes. They may learn they like those Walmart shirts a lot better !
9: Apartment/House Shop
Show your kids how to find a suitable living space. Are they dead set on a house with the movie theater down stairs? I’m sure they are. Give them a sample income. Say they’ve got a job making $15 an hour. Show them how much they will expectantly spend on groceries, gas and utilities, rent, and what kind of money that leaves them with. They might find that one bedroom one bathroom house looks just fine.
10: Mortgages & Interest
Before they even start thinking about buying a house, teach them how a mortgage works, and how interest on that mortgage works.
11: Credit Cards
Teach them the reality of credit cards. They can be super helpful yes, but they can also be very dangerous. A good rule of thumb is, don’t put it on your credit card if you can’t pay it off in full when the statement comes in.
12: Building Credit
So many kids go out and can’t get a loan for anything because they have zero credit. We as parents need to show our kids how to start building credit.
Teach your kids about what kinds of insurance they will need and how much to expect to pay. Renters insurance, car insurance, health insurance, eventually life insurance.
You can actually start teaching your kids about tithe at a very young age. Tithe is 10% of what you make that you give to God. There is speculation on tithe because some people see it as a way for the church to just make money. But there are lots of scripture supporting it. But you should always study those out yourself. There is also an argument over whether you are supposed to pay 10% off of what you make, or 10% of your profit, like what is left after you pay your living expenses. I personally believe it is for the total of what you make, but I think as long as we are doing what we feel is right, then God sees that.
What do y’all think of this list?
It is based of a teaching from Joe McGee, he is an amazing teacher and pastor for the family! I highly recommend you check out his work!
LIVE LIFE BIG