Money. It’s a big part of life, and something we all have to figure out how to manage so we can successfully pay our bills, save for our futures and be prepared in case of an emergency.
If you’re single, your money is your own to manage and budget as you see fit. But if you’re in a relationship, it’s important to have conversations about finances to make sure you and your partner are on the same page. Have kids? Start money talk early so your little ones can start building their financial health at a young age.
Talk to your partner
When you’ve established a serious relationship and you’re ready to join your money, it’s important to have honest discussions so you and your partner can take full control of your finances. First, you’ll want to talk about your accounts. Maybe you’re considering a joint account, or perhaps you’re in a situation where separate accounts make more sense. Ultimately, it’s all about what works for you and your partner.
Next, create a budget that works for both of you. List your income, expenses and any debt to get a clear picture of your financial health, then make adjustments as needed. Our online budget calculators are a great resource for budgeting. Then, lay out a plan so you both know who’s responsible for contributing and paying the bills. Perhaps you split the cost of bills 50/50, but only one person is in charge of managing the payments.
Be sure to talk about your long-term financial goals together so you can get a full understanding of where you both want to be financially. Our Compass tools are a great resource to help you along your financial journey. Start by taking our short financial health quiz so we can put the right tools at your fingertips and help you reach your goals. A big goal that many forget about: a savings fund of at least $1,000. Discuss the importance of a savings account so you can put money aside for all of life’s unexpected events.
PRO TIP: If you’re new to the “real world,” making sure you have certain bills in your name, like gas, electric, water, etc., will help you build credit.
Talk to your kids
When it comes to teaching your kids about money, start the conversation early. We recommend an age that kids are getting comfortable with math and learning about the value of money — generally second or third grade. You can start with basic subjects like saving and spending and wait to introduce debt and credit until they’re a little older and can grasp those topics better.
To help you get started, check out our Personal Budgeting Activity Guide. This is a great resource full of activities to educate your little ones on saving and budgeting so they can take the first steps toward developing a healthy financial future. Is your little one not so “little” anymore? We have resources for them too. Check out our Earning & Learning Activity Guide, which gives helpful coaching tips for teaching your child how to earn, learn and save and offers activities to help them manage their money.
Other ways to introduce your kids to money include starting an allowance and a savings account. An allowance is a great way for kids to learn the basics of earning money, and opening their own savings account will help them take ownership and see the effects of saving their hard-earned cash. Check out our Regular Youth Savings account — it requires an opening deposit of just $5.
PRO TIP: To help reinforce the concept of rewarding hard work, consider setting up a payment system for academic performance: $3 for an “A,” $2 for a “B,” etc.