Raising financially savvy kids starts with teaching them from a young age to work with money. It can be challenging to start, but it is possible!
It takes a lot of effort on behalf of the parents, but it is worth it in the end. The best way to raise financially savvy children is to teach them about money from a young age in order for them to make smart financial decisions as they grow up.
This article will give you 10 tips for raising your kids with good money habits!
1- Begin teaching money management skills when they are young
Start by showing your children how to count coins at an early age. Let them use real cash instead of letting them use play money or plastic cards. You can even set up a small piggy bank for each child and encourage them to save their own money!
If you give your kids a chance, they will surprise you with just how much responsibility they can take on at such a young age!
2- Talk about money with your children
It is important to discuss financial issues as they come up. Discuss the different types of jobs and how much those people usually make, etc. Teach them that there are a number of ways for adults to earn income, not just through a job!
Teaching kids these lessons early on will help put their minds at ease when it comes time to take care of themselves financially later in life.
3- Use allowance to teach financial responsibility
Give your children an allowance, but let them know that they have to pay for certain things. For example, if they want a toy or candy bar at the store, make them put the money they saved towards it in their piggy bank before buying it! This is also a great way of teaching kids about budgeting and earning more income.
For the tech-savvy ones, there is even a kid’s allowance app for parents to manage and keep track of the money. These apps can help kids in saving and spending responsibly in a fun environment that they will enjoy.
4- Don’t do everything for your kids
Encourage independent spending and saving as much as you can. Do not give in to every single request they make at the store or with their allowance. They will learn quickly that money does not grow on trees!
This is a great way to teach them about budgeting and managing their funds without constantly taking handouts from mom and dad. This teaches children how to be responsible, which makes it easier for them when they go off to college or get full-time jobs later on!
5- Buy your kid’s gift cards
You can give your children gift cards to their favorite stores and restaurants instead of cash. This teaches them how to manage money better because they will not be able to use the card for everything under the sun!
6- Make your kids responsible for their own expenses
Don’t be afraid of letting them make some money on their own by having chores. If you don’t have any already, consider tasks like taking out the trash or walking the dog.
Allow them to save this money and then let them buy things that are within reason with their earned income. This will teach your children about buying items when they have earned enough instead of just asking mommy every time they want something new.
7- Let your kids participate in chores and other family activities
Give them a real reason to earn their money by allowing them to contribute! If they help around the house or on different projects, then allow them to take some of that revenue as payment. This encourages teamwork and responsibility at an early age, which will serve children well later on in life!
8- Teach your children the habit of offering
Encourage your children to give any extra cash or change they might have to lie around to a charity of their choice. This teaches them the value of altruism and how lucky we are to live in such prosperous countries!
This is an excellent way for kids to learn about generosity, kindness, and empathy all at once!
9- Teach your kids how to pay with credit
Do not forbid them from using credit cards. It is important for children and even teenagers to learn the consequences of buying now and paying later.
By teaching them about balance transfers, interest rates, late fees, etc., they will be more likely to make smart decisions when it comes time for that first full-time job! That way, they can avoid racking up unnecessary debt and hurt their chances at a good financial future!
10- Set a good example
It may seem obvious to state, but it is very important that you set a good example for your children when it comes to money. If they see you constantly buying things on credit and not paying off the balance each month, then this will teach them nothing about building their own savings.
Bottom Line
Teaching your kids about personal finance is a great way to give them the tools they need to succeed in life. If you establish good habits from an early age, then when it comes the time for them to move out into college or get their first job, there won’t be any surprises!
