There’s no doubt that parenting can stretch you in a million different directions. From teaching your infant to walk, teaching a teen to drive, supporting your child’s education, or many things in between, some lessons your child simply won’t learn at home.

This generation of youth has a new way of navigating finances, and conversations about money have evolved. As a financial institution, Elements has a team of experts to help your child understand money at every life stage. We stay current on the latest money trends and innovations to share trusted advice with a fresh approach. In this article, we researched and debunked the most common money myths to give you the tools you need to build a solid financial foundation for your child.

MYTH: Debit and credit cards are free money

Cards are the primary method of spending for most adults. To a child who only learned about money by counting bills and coins, a plastic card might seem like access to unlimited funds. It’s important to reinforce that money isn’t just a plastic card. Opening a checking account and giving your child a debit card is a good way to introduce them to today’s money management tools, but they should also be aware that money comes in different forms, like cash, checks, etc.

Need help finding the right starter account?

At Elements, we offer a tailored youth account for ages 10 to 24. With Student Edge Checking, both you and your child can enjoy perks like no overdraft fees and no minimum balance. Learn more here.

MYTH: You don’t need to start saving until you’re older

While kids are encouraged to stay youthful and not to overthink their finances, they’re never too young to start saving for their wants or needs. A survey from Bankrate found that the majority of adults have at least one financial regret. Most noticeably, 22% of people regret not saving for retirement early enough. Understanding the potential of saving and investing early on can instill discipline in children and lead to better financial confidence down the line.

Let Elements help your child on their journey! We offer a special Grow Account for youth ages 0-18 that teaches your child how to save and manage money. Learn more here.

MYTH: Having debt is bad 

Most teens and young adults have probably heard someone talk about their negative experiences with debt, but they might overlook the fact that not all debt is equal.

Having secured debt, like a car loan or mortgage, isn’t necessarily bad. In fact, if payments are made on time, it can help improve your credit.

However, taking on too much debt can harm your credit score and impact your borrowing power in the future.

When explaining debt to your child, remember that most adults will take on debt, especially for major purchases like a car or home, but it's best only to borrow what you need. If children aren’t taught about debt early on, they’ll be unprepared to manage it responsibly as adults.

MYTH: The more money you have, the better your life will be

There’s indeed a link between money and happiness, but being wealthy doesn’t always guarantee a better life. Yes, having enough money to live comfortably is an important goal for most families. However, it’s not always about how much money you bring home; it’s about how you manage it.

At Elements, we empower our members to achieve financial success in whatever way that looks for them. Ask yourself: What does financial success mean to your family? Is it sending your child to their dream college? Retiring early? Building a solid emergency fund? Having financial success isn’t just about being extremely wealthy. Understanding how to allocate the funds you need to achieve the life you desire is the real meaning of financial success.

Have questions or need trusted advice? Our credit union experts are always here for you. Contact Elements Financial for support in all aspects of your financial life.