Without guidance, children aren’t going to know what to do with money. You don’t want to raise children who grow up not knowing the value of a dollar. Instead, you can employ some of these simple tricks to teach your kids about valuing money. Once your child has established a responsible relationship with money, you’ll know they’re adequately equipped for the real world.
1. Start early. It’s important to start talking to your children about money as early as possible. In fact, the Institute of Consumer Financial Education’s Executive Director, Paul Richard, suggests, “As soon as children can count, introduce them to money. Take an active role because repetition and observing others are the two methods they learn by.”
2. Teach Responsibility. It’s important to teach kids financial responsibility. This may require switching from credit to a cash basis. It’s difficult for children to understand how debit and credit cards work. In fact, they may think there’s an endless supply of money in the bank. When you use cash, they’ll know it’s not endless and can run out.
3. Be a good role model. It’s important to have healthy spending habits, when you’re attempting to teach healthy spending habits. If you’re taking your child shopping, consider teaching them about coupons and other money-saving tricks. If they’re interested in a new wristband, help them search for a cheap wristbands coupon.
4. Set goals. If you want to get your kids saving money, you’ll want to talk to them about their goals. Your kid may receive a dollar and want to spend it immediately on a candy bar. You know your child has been asking for a new video game console for quite a while. This is the perfect time to tell them how many months it would take them to save for this console and set them up with a savings account or piggy bank.
5. Take a trip to the bank. Banks can be very educational for children. It’s a great place to talk to financial experts and get your children thinking about their futures. While at the bank, set your child up with a new savings account. Keep an open dialog with your child, allowing them to express openly what they’re hoping to spend their money on and how long they plan to save it. This is also a great time to explain interest rates.
6. Take children shopping. It’s important to take your children shopping for all different sorts of things. Let your kids know these are expenses they’ll also be responsible for paying for. Employ money-saving tricks, like coupons, to show them how you can make smart money choices too. Be honest about the family’s finances, by letting your child know when an item is simply too expensive. Even when shopping at the hardware store, you’ll want you kids along as well. Show them how they can employ the use of Home Decorators Collection promo codes to save big on home goods.
The Bottom Line
Money management is fundamental for a quality life. No parent wants to worry their child is going to make poor money decisions later in life. In order to ensure your kid has a successful future, you need to educate and motivate your child to make the right choices when it comes to their money.