4 Steps to Raising Money-Savvy Kids
Do you have kids? How much do they know about basic financial education? Teaching your children about budgeting, saving and spending is actually one of the best things you can do for them. Guiding them through the ins and outs of a money-savvy lifestyle will set them up for future success.
Fortunately, because children are naturally curious, teaching them the basics of financial literacy can be quite easy.
Here are four steps you can take to teach your children the basics in creative, fun and engaging ways.
Welcome money-related conversations.
Talk to your children about money. When they let their curiosity get the better of them and ask questions, give them answers and encourage them to be more inquisitive. Start with the simple stuff, such as where money comes from and how it works. Explain everything casually, but let them know that money is a serious subject. They can surely benefit from knowing at an early age that money shouldn’t be intimidating or inaccessible.
You can also give tips or work financial tidbits into everyday conversations. Eventually, you might even get to teach your children a thing or two about more advanced topics such as maximizing credit card rewards.
Involve them in budgeting.
The next time you create a family budget, consider including your children in the decision-making committee. They can certainly learn a lot from watching you decide how to spend your money. Of course, you don’t have to keep them privy to the most sensitive details of your budget. Just teach them about the ins and outs. This can be a good opportunity for you to instill in them the importance of proper planning when it comes to all sorts of major expenses.
Let them make their own decisions.
Allow your children to decide how to spend their own money. Their spending habits don’t always have to be the same as your preferences. Keeping certain items off-limits will help them make smart choices, but you should also let them buy what they have saved up for. If they end up regretting certain decisions, they will surely learn a thing or two about the importance of proper budgeting and planning.
Let your children lend a hand when you go shopping. Perhaps they can help prepare the grocery list and coupons. If you’re buying clothes, try imparting nuggets of wisdom such as how to save money on clothes shopping. Trips to the mall or the supermarket are always a great opportunity to teach children how to identify the best value for their money.
Set a positive example.
This last tip is actually the most important. Your children are more likely to copy your actions than listen to your words, so be the best role model you can be. See to it that your actions and decisions about financial matters all reflect a healthy understanding of proper money management. Show your kids that you’re committed to living a financially savvy life that makes use of all the lessons you share with them.
Writer: Maricor Bunal
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