Teaching your kids about money from a young age will help them develop healthy financial habits that they can carry into adulthood. Here are five easy ways to teach your kids more about managing their finances.
Give your kids an allowance As soon as your child understands that people use money to buy things, give them a small allowance. Allow your kids to spend their money as they like, even if that means they buy something that seems wasteful. Making mistakes can help them learn how to make smarter choices with their money in the future.
Save money in a clear jar Instead of using a traditional piggy bank, have your children save their money in a clear jar. This will allow them to visually watch their money grow, which can be a big motivating factor. Since money can be an abstract concept, the more concrete you can make it concrete for your children, the better.
Play games that involve money Playing games that involve using pretend money can help you teach your kids how cash gets exchanged in everyday life. For example, if you have young children, you could set up a pretend store and have your kids hand over play money in exchange for goods. Playing board games like Life and Monopoly can also demonstrate to your kids how money works in a fun way.
Include your kids in family budget conversations Discussing family finances and allowing your children to express their opinions on how money should be spent can be beneficial. They’ll be able to see how you responsibly handle your finances which can, in turn, help them make smart decisions about how to manage their own money. In addition, this can help your children become comfortable talking about money without stigma or stress.
Encourage your kids to make their own money Another way for your kids to learn a lot about money is by earning it. Encourage your children to make money by mowing lawns, doing yard work, babysitting, delivering the newspaper or shovelling snow for friends and neighbours. Allowing children to make their own money helps prepare them for adulthood and learn how to handle their finances.
Remember, you don't have to be a finance whiz to give your kids the tools they need to make good financial decisions.
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