5 Ways to Teach Your Kids About Money
It’s never too early to start teaching your kids about money. One reason parents are encouraged to give their children pocket money or an allowance is to help them grasp the concept of money. It’s one of the building blocks that can help your child develop the skills they need to excel in life. Learning about money is easier than you think. Teaching kids about money helps them get a head start in life.
We’re sharing our top tips on how to help your kids understand the concept of money with easy and proactive steps that you can take every day.
1. Give your child a savings jar
A piggy bank is something that every child should have in their room. It’s a good idea to choose one with a transparent design, allowing your kid to see exactly how much they’ve saved. You can give them an incentive that they can open their money box once it’s full, encouraging them to keep saving their pennies.
2. Explain the cost of everyday itemsOne way you can help kids understand the concept of money is by talking about the cost of everyday items. The next time you take them to a toy store, tell them the price of the different toys and gadgets they’re interested in.
You can set them a budget and tell them which items fit into that and which ones are too expensive to buy that day. You can incorporate this lesson in any experience, from grocery shopping to going for coffee and hot chocolate.
3. Avoid allowing impulse buysImpulse buys happen – even adults are guilty of doing them. You want to avoid giving in to your child’s every whim and ask. Encourage your kid to plan their purchases and save up for items that they want. If they change their mind last minute, ask them to wait a day before purchasing to decide whether it’s a smart purchase.
4. Teach them to give back
The concept of money isn’t all about spending and saving. It’s also about giving back. Be open with your child and tell them when you’re donating money to charities or collection boxes. You might even give them the cash to put into the box, explaining how money can help organizations do incredible work to help other people. This lesson teaches kids that money is about more than material possessions.
5. Lead by example
The best thing that you can do when teaching kids about money is to lead by example. Your kids will always follow your example. You’re their first teacher in life and the person they look up to. If you have a negative relationship with money, this is something your child will pick up on.
Lead by example and teach your child about the concept of money to help them develop a healthy relationship with money. Take your child with you while you’re making a payment to your savings account and avoid putting everything on your credit card when you’re with them.
How are your kids learning about money? We’d love to hear how you’re teaching your kids about money in the comments below.