Why Financial Habits Should Start Early
By Craig Boivin, UMass Five College Federal Credit Union
Published in Northampton Living in July 2025
For young people, learning how to manage money is one of the most important life skills they can develop — and the earlier those lessons begin, the better. From setting aside birthday cash to making thoughtful choices while shopping, small everyday decisions can shape lifelong financial habits.
Just like brushing your teeth or saying “thank you,” saving and spending wisely can become second nature when practiced early. And those habits don’t just impact a child’s wallet — they build confidence, responsibility and independence that extend far beyond finances.
Smart Spending, Smarter Saving
At its core, financial well-being comes down to two things: how we spend and how we save.
Spending: Kids and teens can benefit from learning how to distinguish between needs and wants. Practicing mindful spending early — like creating a small budget or using a debit card with limits — teaches restraint and decision-making in a safe and supportive environment.
Saving: Saving regularly, even in small amounts, builds patience and a sense of accomplishment. Watching their savings grow helps young people understand the value of delayed gratification — and introduces the magic of compound interest.
Together, these habits provide a solid foundation for future goals like buying a car, paying for college, or simply having peace of mind in an emergency.
Starting the Conversation
For many parents, the hardest part is knowing when and how to begin teaching money skills. The good news is, there’s no “right” way to do it — just opportunities to make conversations about money part of everyday life. Whether it’s talking about how you plan your grocery budget or letting your child help save up for something special, real-life examples go a long way.
Looking for a Little Extra Support?
There are many great tools and programs available to help parents support their children’s financial learning. For example, UMassFive offers a Youth & Teen Banking program designed to help families build these skills together — with age-appropriate accounts, digital tools and learning resources.
To further support families, UMassFive is also providing a free webinar that’s part of the public: “Raising Money-Smart Kids: Age-Appropriate Financial Guidance for Parents.”
This session offers practical insights into how parents can confidently teach financial concepts at home, with tips tailored for different age groups and everyday situations. To view webinar dates and register, please visit umassfive.coop/raising-money-smart-kids.
EXPERT CONTRIBUTOR
Craig Boivin
Banking Services
413-256-5500
umassfive.coop
Bottom Line
Financial confidence doesn’t come overnight — but building smart habits early can make a lifelong difference. With a little guidance and support, kids can learn to be thoughtful spenders, consistent savers, and ultimately, financially capable adults.
Learn more by clicking here to start your child’s financial journey today.
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