Teaching your kids the importance of money is very important and, starting at a young age can implement great life skills early on. As a parent or guardian, it is your job to teach your kids good money management skills. This can seem like a big and scary task, but we have a few tips and tricks to help you accomplish this parenting task.
A few ideas that both you and your kids could start include:
- Use a clear jar to save money in.
Using a clear jar, rather than a cute pink piggy bank – allows the kids to physically see the money that they are putting away grow.
- Show them that things cost money.
If you are out shopping, and they (the kids) want a toy, have them bring their own money that they have saved to use towards it. Starting small and building up to bigger things helps them understand the value of money. Going forward, this will help kids understand that if they buy “x”, they will have less money to buy “y”. And therefore, having to make decisions about which is more important to them.
- Lead by example!
Leading by example is key to many things throughout life. As an adult, you have more money than kids, but if you limit your impulse buying, it will help your kids do the same. Thinking about “need” rather than “want” can lead to good money management skills as they grow up.
- Set them up with their own bank account.
By the time your kids are teenagers, you should get them set up with their own bank account. This is the next level to money management and will hopefully prepare them for a much larger account as they become an adult and will teach them the responsibility of their finances.
- Help them make their own money.
Getting your first job is usually both exciting and scary for kids. By helping and encouraging them to find and apply for their first job this will lead to a healthy work ethic.
Seeing their bank account grow as they continue to add in their hard earned paychecks, is a very rewarding feeling!
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