How to Set Up Your Kids for Financial Success

As a parent, you want to give your child the best possible start in life—including a strong financial foundation. Teaching kids about money early and providing support can set them up for long-term success.

Whether you’re saving for college, encouraging smart savings habits, or helping them build credit responsibly, there are many ways to support your child financially at every stage of life. Keep reading for tips and actionable steps you can start taking today.

Start Early with a Savings Plan

One of the best ways to support your child financially is by helping them establish good saving habits from a young age. By introducing savings concepts early, you can teach them the value of setting money aside for future goals.

1. Open a Savings Account

A great first step is opening a savings account for your child. Luckily, Academy Bank offers the Student Savings Account¹ with no monthly fees. Plus, Student Savings provides a source of overdraft protection to keep you covered. Having a dedicated savings account allows your kids to watch their money grow while learning the importance of saving.

2. Encourage Regular Contributions

Whether it’s allowance money, birthday gifts, or earnings from a part-time job, encouraging kids to deposit a portion of their money into savings can instill a habit of financial responsibility. A good rule of thumb is the "save, spend, give" method, which teaches your kids how to divide money for saving and spending. It also teaches them about contributing financially to causes they care about.

3. Set Savings Goals

Teaching kids how to set and achieve financial goals can be a powerful lesson. Help them identify short-term savings goals, like buying a new toy, and long-term goals, such as saving for a car. This helps reinforce the importance of delayed gratification and planning ahead.

EASY HACK: Simplify this money lesson with a Savings Goal Calculator.

Save for College Early

Higher education can be a significant expense, but starting a college savings plan early makes a big difference. By planning ahead, you can ease the financial burden when it’s time for your teenager to start their post-secondary education—whether it’s at a university or a trade school.

1. Utilize Your State’s College Savings Plan

A 529 college savings plan is a tax-advantaged way to save for education expenses. Contributions grow tax-free, and you won’t pay taxes on withdrawals used for qualified education costs.

Academy Bank offers a College Savings Calculator to help estimate how much you should save based on tuition costs and your timeline.

2. Consider Scholarships and Grants

While saving money is important, encourage your teenager to seek scholarships and grants to help cover tuition costs. Many organizations offer financial aid based on academic achievements, extracurricular activities, or community service. Applying for scholarships can reduce the need for student loans, making education much more affordable.

Teach Smart Money Management

Financial literacy is a crucial skill that will benefit your kids throughout their lives. Teaching responsible money management early on helps prepare them for handling finances as adults.

1. Introduce Budgeting Basics

Begin by helping your child understand the importance of budgeting and show them how to track income and expenses. For older kids, consider teaching how to use a budgeting app to help them manage their money effectively.

2. Encourage Ways To Earn Money

When they are old enough, encouraging your teenager to earn their own money through part-time jobs, internships, or entrepreneurial ventures teaches responsibility and the value of hard work. Learning how to manage earned income early on will help them become financially independent adults.

3. Discuss Impulse Spending

Talk to your kids about the difference between wants and needs. Teaching them to wait before making purchases and compare prices can help them develop mindful spending habits.

Help Build Credit Responsibly

Establishing good credit early can set up your kids for financial success in adulthood. A strong credit history will help them secure lower interest rates on loans, rent an apartment, and even land a job in some cases.

1. Add Them as Authorized Users to Your Credit Card

One way to help your child build credit before they turn 18 is by adding them as an authorized user on your credit card. This allows them to benefit from your positive credit history while learning responsible credit habits. Be sure to discuss the importance of making payments on time and keeping balances low!

2. Encourage Responsible Credit Card Use

Once your teenager is old enough, encourage them to apply for a student credit card or a Credit Builder Secured Credit Card.² Emphasize the importance of making small purchases and paying the balance in full each month to avoid interest charges and debt accumulation.

3. Teach the Impact of Credit Scores

Explain how credit scores work and why they matter. Factors such as payment history, credit utilization, and length of credit history all influence their score. Teaching them to check their credit report regularly can help them understand their financial standing and avoid potential issues.

Lead by Example

Children often learn financial habits by watching their parents. Setting a good example with your own money management can reinforce the lessons you teach!

1. Practice Responsible Spending

Demonstrating smart spending choices, such as budgeting for big purchases or avoiding unnecessary debt, helps reinforce financial responsibility.

2. Save for the Future

Showing your child that you prioritize saving—whether it’s for emergencies, retirement, or major expenses—encourages them to do the same. Share your financial goals with them to show the benefits of long-term planning.

3. Be Open About Financial Decisions

When you talk openly about finances in your family, it can help remove the stigma and fear around money discussions. Whether it’s planning for a big purchase or dealing with unexpected expenses, involving your kids in age-appropriate conversations about money can help them feel more confident managing their own finances in the future.

Help Secure Your Child’s Financial Future

Supporting your child financially isn’t just about giving them money—it’s about equipping them with the knowledge and tools to manage money wisely and confidently in the future.

From opening their first savings account to helping them build credit, every financial lesson you teach will contribute to their long-term success.

At Academy Bank, we are committed to helping families create strong financial futures. Explore our savings accounts, college planning tools, and credit-building resources to give your kids a head start. Visit us today to learn how we can support your family’s financial journey!

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