Financial Wellness Minute: Discuss Money with Your Teen

Get smarter about your money with this Financial Wellness Minute. I'm Patrick Voigt, manager from Mid Minnesota Federal Credit Union's Detroit Lakes Office. As you and your family are settling into the school year routine, here are some ideas for you as a parent to help develop a financially confident teen.

• Talk about responsible saving and spending when opening a saving and checking account with them.
• Explain the good and the bad of Credit Cards. The convenience of swiping for payment and ability to track spending. But be aware of annual fees, high interest rates, and other fees.
• Encourage them to build a saving habit early. Save 10% of all earnings to build a rainy day fund. This can become a life long habit.
• Talk about ways to build good credit - pay bills on time, keep credit balances low, and review credit reports once a year. Go to annualcreditreport.com and get a copy of your kids credit report yearly. This assures no one has opened credit lines with their social security number that you are not aware of.

Educating teens about money management and encouraging responsible behavior sets them up for a future of financial success and stability with real life money management skills while you are still there to help them. Want to know more about youth accounts or have a weekly financial wellness tip sent to you? Sign up below or, contact your local Mid Minnesota Federal Credit Union Office. Sign Up for a Weekly Financial Wellness Tip Mid Minnesota Federal Credit Union is federally insured by the NCUA and we are an equal housing lender.