Activating financial habits for a lifetime – Raising financially savvy kids. Our friends at Community Financial Credit Union (CFCU) in SE & Northern Michigan offer up sage advice and tips for how to raise money-smart kids.
Raising Financially Savvy Kids
While many of us grew up saving change and remember our first passbook, today’s kids will rarely use cash. Their financial journey, like so much of their lives, will be digitally-forward and at their fingertips.
As a mother and the president and ceo of Metro Detroit-based Community Financial Credit Union, Tansley Stearns has spent more than two decades helping people discover that money is foundational to life’s light and darker moments. It’s also a tool that can empower dreams, for kids and parents alike.
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Q – What’s the biggest struggle parents face when teaching their children about money?
I think our biggest challenge is that money feels invisible. Kids rarely see cash change hands, and likely will not throughout their lives. That can make it hard to understand why things cost what they do. When they see us tap to pay, use a gift card, or order something online, it can feel like play money. Talking about money regularly and helping children connect the work we do to the dollars we earn can be an important bridge to financial knowledge.
Q – When do you think parents should talk about money with their children? What’s the best approach to talking about it?
Start early and keep it simple. Important and easy-to-understand concepts like “save, spend, and give” can create lifelong habits early. You can reinforce these concepts by involving children in everyday family decisions like choosing between grocery options, planning a vacation within a budget, or weighing in on back-to-school shopping. One of the most harmful patterns that can lead to unhealthy emotions related to money is avoiding the topic entirely. My best advice is to make finances and budgeting a regular, ongoing conversation.
Raising Financially Savvy Kids – CFCU Student-Run Credit Union in Schools
Q – I saw that Community Financial has a program called Student-Run Credit Union. What’s that all about?
We have this incredible program in partnership with over 50 schools across Michigan. We are co-creating the future of financial literacy with kindergarteners to 12th graders, leveraging experiential learning. Using money and making financial decisions is the best way to learn. We work with our school partners to build experiences that lead to smart financial habits in a safe environment and also journey with our team to learn about careers in finance.
The results are inspiring. In 2024, students collectively saved more than $47,000. To celebrate our 30-year partnership with Northville Public Schools, we even launched a $20 Student Savings Starter program. Every kindergartener and 5th-grade student who kick-started their savings with us had their first $20 deposited for them. Beyond the numbers, these programs teach leadership, accountability, and inspire bold dreams. When kids watch their balances grow and experience spending from money they earned, confidence is boosted, and abstract lessons are turned into real-world, healthy habits.
Raising Financially Savvy Kids – CFCU Apps & Resources
Q – What’s your favorite tool parents can use?
Whether your child is just starting elementary school or you are thinking about college savings, everyone deserves a financial partner to help guide a successful life. One tool Community Financial members have free access to is Greenlight. It’s an amazing debit card and app designed specifically for kids and teens. Parents have full control over how and where funds are spent, and kids can divide their money into “spend,” “save,” and “give” buckets. The app includes goal-setting tools, the ability to assign chores and pay automatic allowances, and even interactive financial literacy games.
My daughter has used Greenlight for years, and I’ve seen how it functions as a practice field, where she can make small decisions with guidance. Using the app parents can easily see transactions, set limits, and celebrate milestones.
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Q – Why is it important for kids to learn about personal finance?
I’ve always wanted my daughter to understand how money helps create choices as she grows up, and I still want her to see that her mom’s work is about helping people thrive. Teaching children about financial literacy is important to me because I know the confidence, courage, and dreams it unlocks.
Tansley Stearns is the ceo and president of Community Financial Credit Union, a not-for-profit, full-service financial institution headquartered in Plymouth, Michigan. With 14 branches and growing in southeast and northern Michigan, over 350 employees and $1.5 billion in assets, Community Financial was named one of America’s Best Credit Unions by Forbes. To learn more, about Community Financials kids’ and teen accounts, and resources for parents, visit cfcu.org/kids-and-teens.
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For more info on raising financially savvy kids, visit cfcu.org/kids-and-teens
