Teach Your Children Money Management at an Early Age
When your children are young, you look to teach them all the fundamental skills that will remain with them throughout their life.
From learning to read and tie their shoes to learning how to ride a bike. What seems to slip through the cracks is teaching children the basics of money and how to manage it properly – a skill they will certainly need throughout their life. Here are some basic tips to help you start!
Start with a Piggy Bank
A piggy bank is a classic example of promoting money management to children. While many parents start teaching their children about money with a piggy bank, the lesson behind it may get thrown to the wayside. Simply telling them to “save” may not do the trick. Consider giving them a reason why they should save their money. Give them an example of what you saved for in your life. Children learn by example, and this can be an excellent opportunity not only to teach kids to save but a reason to want to save.
Allowances and Savings Accounts
An allowance gives your child responsibilities and teaches them the concept of earning money for their hard work. Allowances shouldn’t be money handed out at the end of the week, but money earned when their chores are completed around the house.
When your child outgrows their piggy bank, you may want to open a savings account and encourage them to set savings goals. When they reach these goals, consider pumping up their allowances to show their efforts didn’t go unnoticed.
Make Learning Fun
While the classic games such as Monopoly, Pay Day and L.I.F.E are great ways to teach children budgeting and purchasing skills, there are many apps out there for kids of all ages. These apps making learning about money fun and can be done by themselves, with friends, or with you.
Teach your kids valuable money lessons while making it a fun activity. For example, make a small grocery list and set a budget. Go food shopping with your child and let them find the items on the list while staying within the allotted budget. When you think of creative ways for your kids to learn financial lessons, it makes it more appealing and can help stick with them.
When you teach children good money habits early, it will foster better financial management habits as adults. As a result, they will most likely make better decisions when faced with a monetary obstacle. Are you teaching your children how to manage money properly? Do you think money management is an important topic to teach children? Feel free to leave your comments below!