3 Easy Financial Tips to Teach Your Kids about Money
Nov 23, 2022
Kid blew all their money and needs more? Seize this teachable moment.
Relatable?
Let’s be honest – managing money is not something everyone finds easy. It takes a lot of time, responsibility and, in some cases, courage to find success when dealing with financial matters.
Nevertheless, there are ways that we can teach our kids about money and budgeting at a young age so that they will grow up to become financially aware adults.
Here are a few easy things I teach my kid about financial literacy. So can you:
#1 Allowances and Spending Plans
While your kids are getting their allowance, teach them how to manage it.
They can create portions for what they should spend, save or even more categories where they can put their money.
Giving them a fixed allowance and encouraging them to create a record of their savings and money spent can be a good way for them to understand planning and budgeting.
#2 Saving
It’s important to teach kids that there should be more saving than spending. Saving teaches them to create goals and make plans.
Help your children learn how to save by providing a piggy bank or a money jar where they can keep their coins or cash and make small goals like buying a toy they really want or a birthday present they can give themselves or their siblings.
Being prepared is important when it comes to saving as it creates a sense of stability and independence even from a young age.
#3 Comparison Shopping
Let your kids learn to make wise spending decisions. The concept of understanding the difference between a need and a want. It will help them to make the best decisions when they grow up.
Making kids realize what they’re willing to pay for and what they aren't will get them in the habit of always weighing decisions that are best for their personal finances.
In conclusion, we just gave you three easy tips to teach your kids about finance. Make sure you are guiding them throughout the journey, but they need to take their decisions on their own. Don't be strict with it. Let them mess up and learn.
Teaching your kids about personal finance doesn’t have to be very difficult, and with a little creativity you can come up with simple lessons that leave long-lasting impressions.
You can find more learnings from financial consultations with the CEO of The Career Momprener and SUBSCRIBE to TCM team so that you can share with your kids.
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