Needs vs. Wants
By Kristina Howard, Knoxville TVA Employees Credit Union Marketing Specialist
Teaching your children money management skills is a critical part of their future. Good habits start early in life and the savings habit brings lifelong benefits. Here are some simple suggestions to teach your kids the value of money.
Understanding personal finance and how money works for you can make a tremendous difference to you and your family. It can heighten your financial well-being, increase your sense of control, and give you a more positive outlook on life in general. Learning good habits early in life can make managing money easier over the long run.
Long before they understand the concepts of saving, investing, or borrowing, kids sense the power of spending money. They see grown-ups show off their latest purchases, hear them talk about a relative’s new car, or watch while they give thanks for presents.
One lesson about money and finance involves differentiating between needs and wants. This distinction is essential for developing good money management skills. Without this foundation, kids may have trouble controlling their spending as adults, never appreciating the difference between a luxury and a necessity.
A great way to teach the distinction between needs and wants is to set up a savings account at the Credit Union. Allow your child to spend money on needs and encourage them to save for wants.”
10 steps to financial SUCCESS
Being financially successful means you are in control of your money instead of it controlling you. Your income doesn’t necessarily determine how financially successful you are – your choices and priorities do. If you are struggling, financial success may seem like a distant dream, but by following these ten steps, you can make that dream a reality:
Take Stock of Your Current Financial Situation
Create a Spending and Savings Plan
Establish an Emergency Savings Fund
Make Sure You’re Covered
Establish a Good Credit History
Delete Your Debt
Buy a Home
Seek Advice and Do Research
For more information about these ten steps to financial success with our BALANCE Program, visit www.tvacreditunion.com, click on “Helpful Links” and select “Balance Financial Fitness”.