6 Simple Ways to Make Your Kids Money Savvy
November 5th, 2017
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Integrating sound financial foundations into your child's upbringing is just as important as teaching them to eat healthily, be physically active and disciplined in education; all practices which will contribute to an enriched life as they grow older.
Although money and finance can be a little more complicated than teaching your preschooler that their teeth are going to fall out if they eat too many sweets, there are easy ways to develop a healthy attitude towards money from a young age.
Here are 6 important money values, and suggestions to go about teaching them to your kids.
Although money and finance can be a little more complicated than teaching your preschooler that their teeth are going to fall out if they eat too many sweets, there are easy ways to develop a healthy attitude towards money from a young age.
Here are 6 important money values, and suggestions to go about teaching them to your kids.
1. Money does not grow on trees
It is important to understand that resources have limits, especially money. Even though you want to spoil your children and give them all their heart's desire, it is important for them to understand that you have worked hard for what you have and that you have to use it wisely as there is not an unlimited supply. Give them a small allowance for doing chores around the house, and help them spend it wisely, learning that when spent they will have to wait until next month’s allowance for more.
2. Money takes work
Learning from an early age that you work hard as parents to be able to earn money will prevent your children from expecting a silver spoon later in life. Give your children easy, safe chores to do around the house to earn a little pocket money.
3. Money does not buy happiness
It is easy for anyone to fall into the ‘I will be happy when...’ trap. Teach your children the values of gratitude, living within their means, family, love and respect, and they will learn that money can buy physical food, but not soul food.
4. There is more to be gained from giving
Teach your kids the importance of sharing, and experiencing the joy of giving as much as receiving. This will take them far in life. They might need someone else to be giving towards them at some point too.
5. The importance of saving
Saving is not an easy lesson to learn as a child. An easy way however to do this is to encourage your child to save for a more expensive item they really want and to focus on this goal. Tell them you will match every pound they save towards their piggy bank. This will definitely spur them on.
6. The do’s and don’ts of credit & borrowing
It is incredibly tempting to waiver any borrowed money from your little ones, but this does not help in teaching them the hard realities about credit as a grown-up. If they have borrowed money from you, make sure to teach them that they need to pay it back, even in small amounts from their own pocket money or by doing extra chores. Falling into bad credit can be life-destroying. Make sure they understand the reality of spending more than you earn early in life.
Your little financial-advisors in the making might surprise you with their piggy bank pizzazz. Keep encouraging them and rewarding them for their hard work. It will pay off in the future.
What are your most valuable financial lessons to teach your kids? Tell us below.
What are your most valuable financial lessons to teach your kids? Tell us below.
Helga x
