Teach your kids about money. They deserve it
Why should you teach your kids about money? Why shouldn’t you just let them enjoy this stage in their lives without putting this burden over their young shoulders? Do you think they will figure everything out once they come of age? Well, while your children may eventually learn the things they need to know once they become older, wouldn’t you want to be the one to teach them how to manage their money? Believe me, it is one of the best legacies you can ever give to your children.
How to Teach Young Kids about Money
Let your kids learn from home. If you were raised in a family where talking about money matters is considered to be in bad taste, it is time for you to make a complete paradigm shift. Your kids need to learn all they need to know about money at home – not somewhere else.
Keep it age appropriate. This is certainly a case where one size doesn’t fit all. Children of different ages understand things and grasp concepts differently so make sure you use a language that they can easily understand.
Set an example. Keep in mind that your kids look up to you as a role model so start making reasonable choices. Do your research before buying big ticket items and teach your kids why they need to weigh their options before making a purchase. Let them know that this can help them avoid making serious money mistakes that they may later regret.
Don’t let your limitations hold you back. It doesn’t matter if you are not a financial guru. After all, you only need to teach your kids about the basics.
Utilize every teaching moment available. Is your little girl asking for an Ugg boots? Is your son asking you to buy a new car? When such things come up, use them to teach your kids some practical money lessons.
Use a system to reinforce your teachings. Most parents prefer to use the allowance system to teach their children the value of earning and saving money. In this system, each chore is assigned a dollar equivalent and the amount is tallied and paid at designated periods. While not all parents agree on the principle that lies behind this system, a lot of parents find it to be a very effective teaching tool.
Differentiate between needs and wants. Buy your kids presents on their birthdays and during the holiday season but let them spend their own money for everything else. So, if your child wants a toy, let him or her pay for it. This will demonstrate give him a clearer idea of what you are trying to teach him.
Keep it fun. While you may personally believe that money can be a stressful issue, you should never send this message to your kids. Put the fun factor in all your efforts to teach your kids what they need to learn about money. They will surely thank you for it.
Teaching your kids how they can best manage their money will be a lot easier if you follow these tips.