TimesLeader.com

October 1
Mailbag

Dear Editor,

Students have been back to school for a few weeks now and while their summer jobs may only be a fond memory, you hope that the money they earned is not.

It’s more important than ever to teach your kids smart money management, and back-to-school time is a great starting point. By incorporating a financial routine into school, practice and study schedules, they will be bound to pick it up in no time.

Here are five simple tips to help parents teach their kids how to manage those nickels and dimes, according to Theresa Collins, branch manager of First Liberty Bank and Trust’s Clarks Summit branch:

1. It’s a Family Affair

Kids learn through example and experience. By involving younger children in family budgeting, depositing and spending habits, they have the opportunity to learn banking first hand.

2. A Penny Saved...

Whether it’s money from the tooth fairy, allowance or a gift in a birthday card, teaching young children to save creates a solid foundation for personal banking in the future. Dividing their money into savings, spending and giving envelopes may help them learn the basics.

3. Taking it to the Bank

Many banks will open a savings account for young children if accompanied by an adult. Teach kids to save their money and designate a day each week to deposit their earnings at a local bank branch. Explain interest and show how the amount of saved money will grow over time.

4. A System of Checks and Balances

Teach teens how to correctly write a check and the importance of avoiding overdrawn checks. Instruct them to refer to monthly bank statements to be certain they have logged all transactions.

5. Fork over the Plastic

Explain the importance of good credit management and the benefits of paying off monthly balances to avoid interest rates. According to the Federal Reserve, it may take more than 60 years to pay off a $5,000 credit card balance if you only make the minimum monthly payment.

These are just a few simple steps anyone can take to help children learn how to manage their money. For more information on banking and account options, visit www.firstlibertybank.com.

Theresa Collins, Branch Manager

First Liberty Bank and Trust

Clarks Summit