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Finance Lessons for Your Child

Your little bundle of joy is slowly blossoming into an adult. There you are, flipping through the scrap book and all the beautiful memories. Some of your favorites include pictures of your baby submitting a request for their first credit report, wobbling through their first tax season, and applying for their first loan…

Okay, so your child’s financial milestones might not make for the prettiest pictures, but the reality of the matter is that raising children to responsibly manage finances is one of the most important aspects of their upbringing. With that in mind, it is important to start early. Here are three crucial financial lessons that you should be passing down to your children as they grow up.

1.  The basics of budgeting

The bedrock of all personal finances is managing a budget. For most children, the first step to budgeting involves an allowance. After all, it is hard to spend wisely when you don’t have any money. Start small with a weekly allowance that grows along with your child. As they earn more money, encourage them to spend a little if they have their eye on something and then set aside the rest in savings. You can even have them create a kids savings account with us here at Gulf Winds.  

2.  Opportunity costs

Desire is limitless, but means are limited. Opportunity cost, in the context of personal finance, means you want to help your child understand that they can’t afford everything they want. Buying a new video game console will mean they might not have enough money for a new iPhone. A new pair of shoes will cut out money for a new backpack. Help them understand tradeoffs and how to weigh their desires and means accordingly.

3.  Teach them about credit

Teenagers are prime targets for credit agencies. Developing good credit is important in our economy, and this is where early budgeting lessons really pay off. Talk to teens about the dangers of overspending and make sure that they understand how to use credit cards rather than letting credit companies use them. Encourage them to get a beginner’s credit card at Gulf Winds. We will be able to help them every step along the way to them building great credit and having a successful financial future. 

These important financial lessons will help your child have great financial health if they implement these steps early in life. One way to keep them financially wise is to have them become a member at Gulf Winds early so that we can help them grow into a financially healthy young adult. This way they can be ready for anything once they step out into the real world. Teaching your children about finances early will keep them out of financial trouble in the future, and it will help you set them us for a life full of financial success. Start investing in your kids future today!


Katy Hebebrand

Katy Hebebrand

Katy Hebebrand is a mom of three and freelance writer working in Pensacola, Florida. She earned her Public Relations BA from the University of West Florida and her Media Design MA from Full Sail University. She was born and raised in Pensacola and spent the first ten years of her career working in Pensacola before shifting to doing contract work full time in 2018.

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