A new school year brings new expenses for you and your family. If you’re giving your child an allowance or they’re spending savings from a summer job, it can be difficult to teach them the value of money. Here are three financial tips to help your child have a financially successful year and future.

Needs vs. Wants

The difference between needs and wants will help anyone develop a heathier relationship with money, especially kids. Ask your child to make a list of wants, and needs, then help determine which items they think fit best in each category. This will give them a better understanding of the impact their choices could have as well as improve their budgeting skills. For example, if your child chooses to buy candy rather than school supplies, they may quickly realize they no longer have enough money for those much-needed items. Once they have a thorough grasp on the subject, they may be less likely to spend recklessly.

Set Financial Goals

Has your child started saving for the future? Whether it’s for an after-school activity or college tuition, setting financial goals is important. It’s a great way to teach them about saving and budgeting over a long period of time. Here are a few achievable goals to help your child get started:

• A new toy or video game
• School field trip or vacation
• Down payment for a car

Study and Learn New Skills

Once you get your child started with learning about finances, encourage them and continue to build on that knowledge. Their relationship with finances is always evolving with different needs and opportunities. When they have more information on subjects such as credit cards and credit scores, they’ll be better prepared once they reach that stage of life. Studies show that when kids learn the basics early on, they handle money better as adults.

As a parent, teaching your child about money could pay off down the road. Start as early as possible with simple tips and tricks, and always be open to talking about finances with them. They’ll most likely begin to feel more comfortable sharing their concerns with you as time goes on.

Cinfed's Financial Education Center Center allows you to take advantage of tips, hints, and tools that can make it easier to handle your finances at any age. MyMoney is also a free financial education tool available to kids ages 14-18 at any time.