We all want our kids to grow up to be successful, happy and of course financially secure. Teaching your kids about money is very important, but simply repeating “money doesn’t go on trees”, isn’t enough.
Even if you don’t have an extensive professional background in finance, nurturing your children’s financial literacy doesn’t have to be a big challenge. Children are naturally curious. It’s like they have a built-in desire to learn. If you take the following steps and teach them the basics of spending, budgeting and saving in ways that are fun and engaging, they will surely grow up to be money savvy adults.
Talk to them about It
Don’t shy away from simple money-related conversations. When your children let their curiosity get the better of them and ask questions, don’t hesitate to give answers. Explain money matters casually but seriously. Whenever possible, try working the subject into everyday conversations. You can also share practical money tips every now and then. It’s important for children to learn that, even though handling money requires carefulness and preparation, it should never be inaccessible or intimidating. Teach them at an early age that knowing the proper way to handle money is necessary to a successful and satisfying future.
Keep them involved in budgeting
Children can certainly learn a lot from seeing how you create a family budget. The process can be a great learning experience for them. While you don’t have to be privy to every specific detail of the budget, you can teach them all about the basics. As you teach them the ins and outs of budgeting, they will also learn the importance of having a thorough decision-making process when it comes to expenses.
Let them make decisions
Give your children the freedom to decide how to spend the money they have saved up. Keep in mind that their spending habits don’t need to exactly match your preferences. Help them make smart choices by keeping certain items off-limits, but don’t restrict them from buying something they really want. Besides, if they end up regretting buying something, that can be a good learning experience about proper planning and budgeting.
You can also take them with you when you go grocery shopping. Let them join in on the fun of preparing the grocery list and choosing the right coupons. Weekly supermarket trips can become fun learning opportunities that will instill in them the importance of planning, saving and identifying the best value for their money. And of course, be sure to take the right steps to save money on grocery shopping.
Be the best role model
Always set a positive example for your children. Because they are much more likely to copy what you do than listen to what you tell them, you must teach by example. Make sure that your decisions and actions about money matters reflect a good understanding of healthy money management. Show your children that you’re 100% committed to planning, budgeting, saving, and all the other lessons you impart to them on a regular basis.
For more tips on how to ensure a financially sound future for you and your family, be sure to check out the rest of this blog. You’ll find lots of guides such as different ways to save more money and become more financially capable.