Ways to Teach Kids About Money
An important life skill to teach your children that will set them on the right path towards personal and financial independence is the value of money. It will take time and patience!
From an early age it is important to provide financial lessons whenever your child receives money – Christmas, Birthday, Graduations etc. Children should learn early on that more rewards are collected by being responsible than they are by choosing quick pleasure, perhaps at the shopping mall when looking at the latest fashion.
Simple tips to teach kids:
- Raise Savvy Spenders: Help your children distinguish between wants and needs. It is very easy to fall into the trap of impulse buying. It is not a great lesson to teach your children. When shopping check for available coupons from the store or even the clearance rack.
- Provide Proper Tools: Provide your child with a piggy bank, money given by relatives can be placed in the piggy bank. As your child gets older, open a savings account for them at a local branch. Encourage your child to save money they receive for birthdays etc.
- Budgeting Techniques: Teach your child who may be close to getting a driving license how to save fort their first purchase of a new car. The more they save each month, the sooner they will reach their goal.
- Teach consequences: Rather than bailing out your child after he spends his savings on something frivolous, teach the lesson of consequences and the value of planning and budgeting. Add chores that your child will need to do to pay the money back to you.
- Make it a Family Matter: It is healthy in a family to talk about family finances. Explain to your family that this year a family holiday will not take place as a new family car is needed. Teach them how to budget especially as they begin to bring in a small paycheck of their own.
Share with us in the comments below other tips that have worked in your family.