One of the most important life lessons for your kids isn’t something they get taught at school. Teaching your children the true value of money is a parent’s responsibility. We live in a world that’s full of financial hurdles and being able to manage money is vital for your child’s future success. If you want to prepare them for their financial future here are ten ways you can do it.
- Be a Role Model – one of the most effective ways to teach your kids about anything is to set a good example. It’s been shown that children are more likely to follow their parent’s actions rather than their words. If you waste your money on useless things or struggle with saving, your children could well turn out to be the same. Try to keep your financial matters organized and make sensible decisions about spending money.
- Give Them a Piggy Bank – giving your child a piggy bank is a good place to start their financial education. It provides them with an opportunity to start saving for themselves. It’ll only be small amounts to start with, but it shows them how they can save for something they want.
- Teach Them Basic Math – they’re going to learn math at school, but you can start things off even earlier and give them a good understanding. There are plenty of online resources you can use to help you teach them the basics.
- Encourage Them to Set Financial Goals – when they’re a little older and have become used to saving money in their piggy bank, you can encourage them to save for a particular goal. Next time they come to you saying they want something because everyone else at school has it, talk about setting a savings goal so they can help to pay for it.
- Show How Money Can Help Others – you should talk to your kids about money on a regular basis. It shouldn’t be a conversation that’s only for adults. It’s also important they understand money can be a powerful tool for helping others as not everyone is as privileged as they are. Money can be used to give back to others who don’t have very much as well as for buying things that are important to themselves.
- Give Your Child a Small Allowance – we’re not talking hundreds of dollars here. When your kids are young, it should be enough for them to buy small items such as an ice-cream bar, hair clips or a book. When you go to the store, encourage them to bring their pocket money with them in case they find something they want to buy. At the same time, you also need to encourage them to save some of their pocket money for larger items.
- Involve Them in Shopping Trips – when you go shopping let your children come along and help them decide whether items need to be bought. It’s important they understand that once money has been spent, you can’t take it back again if you’ve made a bad decision or if you decide you want to buy something else.
- Provide Ways for Earning Extra Cash – a good lesson for your kids to learn is that they can have more money, but they’ll have to work for it. Make a list of the jobs they can help with around the home together with an amount you’re willing to pay. The jobs could include washing the dishes, raking leaves up in the yard, washing the car, setting the table for dinner or dusting the furniture.
- Help Them Achieve Financial Independence – as your children get older the aim is to give them a helping hand towards financial independence. When they start to think about leaving home, they need to understand the basics of enjoying an independent life. There are going to be a range of different bills they have to pay. They’ll also need to decide what type of bank account to have. Thankfully, the internet is a great tool to have in their corner. There’s so much information available online as long as they know where to look. If they want to know more about checking accounts, for example, they can look at this site.
- Hold Family Finance-Related Meetings – families don’t sit down and talk about things enough anymore so put some time aside to sit down and talk as a family about finance-related things. A good example is to discuss the different ways you save money. It’s also a good time to praise them for the effort they’re putting in too.
There’s no perfect way to teach your kids about the value of money, but the ten points above should help you prepare them for the future.