The Importance of Early Financial Education
Just as you teach your children the alphabet and colors to prepare them for school, instilling financial lessons at a young age is essential for their future. It helps them build a healthy relationship with money and make smart financial choices as they grow. At TFNB Your Bank for Life, we’re committed to starting financial education early to set kids up for lifelong success. When we say we’re Your Bank for Life, we’re here to support your family’s growth every step of the way.
Starting with Savings Basics: The Three-Jar Method for Kids
Sometimes, the simplest methods are the most effective. One of the best tools for teaching kids about money is the Three-Jar Method. Its simplicity and flexibility make it a great choice. You can adjust the proportions based on your family values and your child’s age. For example, you might start with a 50-30-20 split, a popular budgeting rule for adults, and adapt it for kids. This means allocating 50% of their funds to spending, 30% to savings, and 20% to sharing. TFNB offers a tutorial to help teens and parents implement this budgeting method.
This method provides a tangible way for children to see their money grow over time in the savings jar, make choices with their spending jar, and experience the joy of giving with their sharing jar.
Here’s how it works:
- Create three clear jars or containers and label them “Saving,” “Spending,” and “Sharing.”
- Whenever your child receives money (from allowance, gifts, etc.), help them divide it among the jars.
This method works because it gives children a hands-on experience with money:
- The Saving Jar teaches the importance of setting aside money for future goals
- The Spending Jar encourages children to make decisions about what they really want
- The Sharing Jar introduces the value of giving back to the community.
As children grow, you can expand this system to introduce new concepts like interest (perhaps by adding a “bonus” to their savings) or budgeting (using the spending jar wisely).
From Jars to Budgets: Introducing Simple Budgeting
Once your child has outgrown the Three-Jar Method, the next step is tracking a basic budget. Help them distinguish between needs and wants — a key concept in managing money. If your child receives an allowance, work with them to create a simple budget that allocates money to saving, spending, and giving.
This reinforces financial responsibility and the value of delayed gratification — an essential lesson in today’s fast-paced world.
There are many ways to teach budgeting and what better way than with an engaging app?
Helpful Family Financial Apps for Kids, Tweens and Teens
If your child is ready to dip their toe into the financial waters, there are some easy ways to get started before opening a minor savings or checking account at TFNB Your Bank for Life. There are a variety of financial apps that can make financial education — dare we say it, fun! Consider these family-friendly, interactive financial apps as good tools for teaching financial habits. Then, once they’ve learned good budging habits, visit your local TFNB Your Bank for Life banker for a personalized banking experience.
Here are some financial tools to get the family started:
- GoHenry: Offers a prepaid debit card and app to help kids manage money while parents track spending.
- Greenlight: Similar to GoHenry, with added tools for budgeting and financial literacy.
- Rooster Money: Focuses on allowance tracking and teaches kids about earning and saving with a prepaid debit card and a pocket money app.
- FamZoo: A virtual family bank with a variety of financial tools where kids can learn budgeting in a safe environment.
As your child learns about saving and budgeting through these interactive online resources, you can level up their financial education by involving them in more personalized real-world experiences. Visit your local Central Texas community bank, like TFNB Your Bank for Life, where they can speak with a personal banker. As your child’s financial understanding grows, more ways to support their learning are available. That’s where TFNB Your Bank for Life steps in to help.
TFNB's Resources for Young Savers
At TFNB Your Bank for Life, we offer a range of tools and resources designed to continue your child’s financial education beyond the home. Whether they’re just starting out or ready to take their next steps, we’re here to support their financial journey with:
- Kids Life Saving Club: A special savings program designed to engage young savers. Your child will be paired with a personal banking officer and enjoy benefits like free internet banking, an ID card, and fun rewards. Every $5.00 deposit earns a prize from the treasure chest. No minimum deposit is required, and the account is for individuals 17 or younger. A parent or guardian must be a joint owner.
- Workshops, tutorials and educational materials for families, like our Financial Edge Academy, that provide valuable insights and tools.
- Checking Account: When your child is ready, we will help them open their own checking account! With no minimum balance, free online banking to track expenditures, and a debit card for everyday purchases, it’s the perfect way to introduce them to manage their money responsibly.
TFNB Your Bank for Life — Investing in Families for Life
At TFNB Your Bank for LIfe, we support your family’s financial journey no matter what stage of life! We want to be the Central Texas community bank you turn to with every member of your family. Visit any of our locations or contact us at (254) 840-2836 to learn more about our youth checking and savings options as well as educational resources. Together, let’s raise a generation of financially responsible individuals!
If you have any questions or would like to know more about our banking solutions, contact us at 254-840-2836
