Helping Your Kids Start Their Financial Journey
Date: February 18, 2025
Financial literacy is one of the most valuable skills you can teach your child. By starting early, you’re setting them up for a lifetime of smart money habits. From saving for their first bike to managing a budget as a young adult, financial responsibility begins at home.
This guide will help you introduce key financial concepts, encourage savings habits, and explore options like WestobaOne+ FREE Chequing Account for Youth, Students & Seniors and Registered Education Savings Plans (RESPs) to support their future.
The Importance of Teaching Kids About Money
Children absorb financial habits from their surroundings. Teaching them about money from a young age helps them understand its value and how to use it wisely. Here’s why early financial education is essential:
- Helps kids develop healthy savings habits
- Teaches the importance of budgeting
- Builds confidence in making financial decisions
- Prepares them for future expenses like education and living costs
Teaching Your Kids to Save
One of the best ways to introduce kids to financial management is through saving. Here are some tips on how you can help them build a savings habit:
Ages 3-6: The Basics of Money
- Use a clear jar or piggy bank so they can see their money grow.
- Introduce the concept of “spending vs. saving” by letting them decide between using their money now or saving for something bigger.
- Offer small rewards when they reach savings goals.
Age 7-12: Goal-Oriented Saving
- Encourage them to set specific savings goals, such as a toy, bike or gaming console.
- Introduce an allowance system with savings expectations.
- Show them how saving in a WestobaOne+ account allows their money to be safe while still being accessible.
Age 13-18: Preparing for Financial Independence
- Open a chequing account, like WestobaOne+, with them and teach them about managing their own banking.
- Encourage them to set aside money from part-time jobs or gifts.
- Teach them about responsible spending with a debit card.
Opening a Bank Account for Your Child
A great way to help children build financial confidence is by giving them their own bank account. The WestobaOne+ account offers:
- No monthly fees
- Unlimited transactions
- Mobile banking access for easy monitoring
- Free e-transfers to send and receive money effortlessly
Opening an account teaches kids how to deposit money, track spending, and use digital banking tools. Parents can guide younger children while older teens can take on more responsibility in managing their money.
What is an RESP?
A Registered Education Savings Plan (RESP) is a smart way to save for your child’s future education. The government contributes to an RESP through the Canada Education Savings Grant (CESG), adding up to 20% of contributions annually, with lifetime grants up to $7,200 per child.
Why open an RESP?
- Tax-sheltered growth
- Government grants boost savings
- Funds can be used for tuition, books, and living expenses
By contributing to an RESP early, you help reduce the financial burden of post-secondary education. Pairing an RESP with a student chequing account, like WestobaOne+, ensures your child has both long-term and day-to-day financial tools.
Start Today!
The earlier kids learn about money, the better their financial future will be. Open a WestobaOne+ account and start teaching smart money habits today.
