With stimulus checks arriving for many Americans, those with children can expect more payments in 2021. Under the American Rescue Plan, those with children between ages 6-17 can expect to receive payments of $250 per month during the second half of 2021 for each child. For children younger than 6, the monthly allotment is $300 a month.
Designed to help provide financial relief to families with children, this additional money presents a unique opportunity for parents who may not need the funding for immediate expenses.
“If you don’t need the money to cover immediate expenses – or even if you do – this can be a good opportunity to teach your children about managing money,” said David Murphy, President-Elect of Marshfield Medical Center Credit Union. “Teaching children about finances has many long-term benefits for them. Children who learn how to budget, save, and spend are more likely to achieve financial peace in adulthood.”
Murphy encourages parents to consider using the funds to establish a savings account for their children, as this provides a platform to teach them skills they will use throughout their life.
“Teaching a child how to use a savings account is something that benefits them beyond childhood,” he said. “Establishing a relationship with a financial institution at a young age is also beneficial. Additionally, establishing an education fund early is always a good idea.”
For those families who need the funding for emergency expenses, Murphy advises including children in the discussion as it can help them understand the value of money.
“Learning what things cost and how to budget for expenses is invaluable education,” he said. “Empowering children by involving them in discussions helps provide them the financial confidence to succeed later in life.”
For more information, stay tuned for Credit Union Youth Month in April, which will feature more educational topics for children and their families.