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Financial Literacy Month: 5 tips to teach kids money management

April is Financial Literacy Month, so here are five tips for kids and teens learning money management skills, from savings accounts to your credit score.

MINNEAPOLIS, Minn — Talking about money can be challenging for a lot of families but it is important to understand how money works, especially at a young age. 

April is Financial Literacy Month, and here are five tips from Prosperwell Financial Advisor, Nicole Middendorf on everything from starting savings accounts to the importance of your child's credit score. 

  1. "Money Talk" with your kids should start when your kids start talking

"If you don't have a savings account for your child, physically take them to your bank and open up a savings account and start contributing money, helping them put money away, giving them an allowance so they have the means to put that money in a savings account," said Middendorf. 

2. Greenlight Debit Card is a great tool to teach your kids how to budget and save.

"You can allocate where they spend the dollars," said Middendorf. "My son would go snowboarding at Afton Alps, so I can give him money specifically only he can spend at Afton Alps."

The free app gives your kid a physical debit card but essentially the parents operate as The Bank, teaching kids the value of the dollar in this digital automated era.

3. If your kid gets a summer job, talk about opening a ROTH IRA.

"It can be used tax free for their first home purchase or tax free for their higher education or they can leave it in the ROTH IRA and that's an easy way to make your child a millionaire," said Middendorf.

4. Explain to your kid the importance of a good credit score and how their money management skills (or lack thereof) can have a BIG impact on their financial future.

"You have your GPA, you have your grades at school, that is going to end when you're done with school but your credit score is going to follow you the rest of your life and that is going to show how fiscally responsible you are with money," said Middendorf. 

5. For older kids gearing up for college, have a conversation between the child and parents about what they are willing to help with: What can you afford, how much will it cost you in the end? 

Middendorf says set those expectations with your kids so they can be wise about the decisions they make for themselves.

CLICK HERE for a Kids and Cash FREE workbook download from Proseperwell Financial.

FREE Kids and Cash Webinar will be held Wednesday, April 28th at 5 p.m.