Credit Union Youth Month: Needs vs. Wants

One of the most important lessons that parents can teach their children is the difference between needs and wants. Knowing how to identify needs vs. wants and how to prioritize them is an essential skill for anyone wanting to build a healthy savings plan.

Define needs and wants

The first step in teaching children about needs and wants is to define the terms. Needs are things that you must have in order to survive, such as food, water, and shelter. Wants, on the other hand, are things that we desire but don’t necessarily need to survive.

Identify needs vs. wants

Help your child to identify needs and wants in everyday life. For example, when grocery shopping, you can point out that milk and bread are needs, while candy and soda are wants. This will help them understand the difference between essential items and those that aren’t.

This may also be a good time to pay attention to how you talk about needs or wants. Children pick up on a lot of the things adults say. And sometimes, adults may talk about wants as if they’re needs. Build awareness of how often you say things like, “I need a soda,” “I need a new set of headphones,” and so on.

Prioritize needs over wants

Prioritizing needs over wants is essential to building financial responsibility. Teach your child to take care of their needs before indulging in wants. For example, they should purchase groceries and pay bills before going out to eat or buying a new video game.

Set healthy boundaries

It’s normal and healthy to indulge in wants from time to time, but moderation is key. Help your child to set a limit on how much they can spend on wants each month. This will help them learn to manage their money effectively and make decisions about what they truly want versus what they can live without.

Lead by example

Leading by example is one of the most powerful ways to teach your children about financial responsibility. Show them how you prioritize needs over wants and how you set limits on your own spending. This will help them see that financial responsibility is a lifelong process and that it is never too late to start.

Savings Tools

Youth savings accounts can be a powerful tool when teaching your child the importance of saving. Through April 29, make the most of these limited-time offers from Cyprus Credit Union in honor of Credit Union Youth Month.

• Open a Dollar Dog account (12 years old and under)
  Ideal for children aged 12 and under, Dollar Dog accounts can be used to teach youth how to save and manage money. Plus, we’ll give you $5* to get the account going when you open it in April.
  
  
• Open a Dream Certificate (18 years old and under)

With flexible terms and the yields of a traditional certificate, a Dream Certificate can help you fast-track your child’s savings. We’ll match your initial deposit up to $25* when you open a Dream Certificate this April for your child aged 18 and under.

Teaching your child the importance of saving could win you a family-fun prize!**

By opening a Dollar Dog account or Dream Certificate during the month of April 2023, you’ll automatically be entered into Cyprus Credit Union’s drawing to win family pass to your choice of the following (10 winners will be selected at random):

• Utah’s Hogle Zoo
• Thanksgiving Point
• Discovery Gateway Children’s Museum
• Utah State Park Pass
• U.S. National Park Pass

Schedule an appointment at your nearest branch or contact us at 801-260-7600 (option 4) to open an account for your child today.

_________________________

*Limit one per child. Child must be 18 or younger to qualify for Dream Certificate bonus and 12 or younger to qualify for Dollar Dog bonus.

**Membership and eligibility required. Offer available on new accounts only. Members earn one entry for every qualifying account opened. Odds of winning depend on the number of entries received. 10 winners will be randomly selected. Winners will be notified via telephone by May 31, 2023. Cyprus employees, volunteers, and immediate family members are not eligible. Contest prizes are non-transferrable and may not be substituted. By participating, entrants agree to release, discharge, and hold harmless Cyprus Credit Union from any and all injuries, liability, losses, and damages of any kind resulting from their participation in the contest or their acceptance, possession, use, or misuse of prizes. All taxes on prizes are the sole responsibility of the winners. Prize will be awarded to the parent/guardian connected to the account. Additional terms and conditions may apply. Contest ends 4/30/2023.

Federally insured by NCUA.

Promo code: CUYOUTH23