Start Financial Responsibility at An Early Age

Online, May 30, 2014 (Newswire.com) - Parents, teachers, and even employees and co-workers can help young people develop good financial habits.

Lotus Bank of Novi, Michigan has provided some tips for young people and those around them to help build strong foundations for financial responsibility in the future.

Allowances
Starting at a young age, providing children with a weekly or monthly allowance can help them grasp the concept of budgeting and prioritizing their spending.

"When you give a child a regular allowance, they learn how to curb their spending habits and save up for larger purchases," said Lotus Bank President and CEO Neal Searle. "By learning these lessons at a young age, it saves them from overspending later when it can be much more detrimental."

Current Events
By encouraging children and teens to keep up with current news, you're not only helping to create a more informed and socially conscious generation, but you can also help teach them about financial issues that may one day be relevant to their lives.

You can sit down and watch the news each night as a family, encourage them to read newspapers or news websites, or simply have conversations about current events, particularly those related to money and finance.

Explain Credit
Credit cards and borrowing money can be complicated issues for young people to grasp. But a lack of understanding can have great consequences later in life. Therefore, it's important to explain exactly how credit cards and lines of credit work before your kids get to an age where they begin using them.

"Well educated consumers make the best possible financial decisions. And the earlier people begin learning about finances and planning for the future, the better off they are," said Searle.

Open an Account
Lotus Bank partners with select elementary schools in Southeast Michigan to provide free savings accounts and lessons about personal finance to students. If your child's school offers such a program, taking part in it can help tremendously. If not, simply take them to a community bank and help them open an account to get them saving and managing their money at an early age.