In most cases, we wait until our children are older before broaching the subject of money and how it affects their lives. However, the concepts of money, its value, and the decisions that must be made can be taught to children fairly quickly. Because of their ability to pick up information through repetition and observation, children benefit from frequent discussions and examples of the importance of money. It’s possible to play an active role in educating your children about financial matters by repurposing commonplace topics or activities.
How To Teach Your Kids To Be Financially Savvy
A Trip To The Grocery Store
Very young children can comprehend the concept of excess supply and lack of supply. As as soon as they are able to count, it’s time to teach your kids about money. Start them off with the basics of money by having them count their change. Children can also be taught the concept of sale prices by reading price indications at the supermarket. You are allowed to give reasons for your bulk purchases or trips to the discount store. This will help them become accustomed to the process, and when they are older, they will be able to compare prices and determine which store provides the best value.
Give Them A Budget For The Week
The financial literacy that children gain from receiving an allowance is invaluable. During your teens, if you mess up, it only costs you $50, but in your adulthood, if you make the same mistake, it could cost you $50,000. You must, however, only give your child an amount of money that is appropriate for his or her age and financial maturity. A child of 10 years old, for instance, might receive $10 per month. With this in mind, try giving your kids complete freedom over their allowance so they can learn from their own mistakes.
Money Is Not For Free
You can provide them with money in return for them helping around the house by doing things like making beds, folding fresh laundry, or just even washing the dishes. Your child will learn a lot about responsibility and the value of hard work by taking on these tasks and getting paid for all of them. This way will value the money they’d be getting from you because it was the result of their hard work.
Wants And Needs – Which Is More Important?
Though it’s beneficial to give kids a say in how much money they are spending, it’s also crucial to teach them to prioritize needs over wants. The same idea — questioning whether expenditures are for necessities or nice-to-haves — is crucial for children, too, especially because it will help them make better decisions with their own money in the future. Which do you want more: the Legos, admission to the zoo, or a week’s worth of grocery items? More familiarity with prices leads to a better evaluation of what is truly important and what can be compromised.
