It’s never too early to start giving your kids basic lessons of finance and money. If they are old enough to ask for toys, they are old enough to start learning financial lessons that will last a lifetime.

Use everyday experiences to teach your kids the how money works and the value of saving. Here are some teachable moments that may come in handy:

• At the bank. When you go to the bank, bring your kids with you and show them how transactions work. Ask someone to explain how the bank operates, how money generates interest and how an ATM works.
• On payday. Discuss how your pay is budgeted to pay for housing, food and clothing, and how a portion is saved for future expenses such as college tuition and retirement.
• At the grocery store. Explain the benefits of comparison shopping, coupons and store brands.
• Paying bills. Explain the many ways that bills can be paid: over the phone, paper or by check, electronic check or through online banking. Discuss how each method of bill pay takes money out of your account. Be sure to cover late penalties, emphasizing the importance of paying bills on time.
• Using credit cards. Explain that credit cards are a loan and need to be repaid. Share how each month a credit card statement comes in the mail with a bill. Go over the features of different types of cards, such as ATM, debit and credit cards.
• Browsing the internet. Explain to your kids how valuable their personal information and privacy is to you, to them and to online predators. Tell them the risks that are involved when they share certain information.

Remember, always encourage your kids to ask questions about money. If you don’t know the answer, feel free to let us know and we are happy to help in any way we can.

These tips are provided by the American Bankers Association and the Iowa Bankers Association.