Seven Tips on How to Teach Kids about Money
As a parent, you have to teach your kids on how to become responsible on almost everything and that includes being financially responsible. Teaching kids about money is very important because they have to realize that it doesn’t just grow anywhere; they have to know how to use it wisely and how to get the best of it. Still, teaching kids the importance of money is not as easy as it sounds. So here are 7 tips for you help your kids learn the value of money.
- It is best to teach your kids at a young age but of course, you have to adjust to their capability of learning things. If your kids are still young, play games with them that have something to do with money. Playing as a cashier or grocery shopping are a few examples.
- By simply taking your kid out to shop, you can teach them a thing or two about money. Let them do the basic computations on your shopping list to help understand that they have budget to follow.
- Your kids will be able to understand money better if they will handle it on their own. Give them their weekly allowance and encourage them to save a certain amount as soon as they receive it.
- Explain to your child the importance of saving. Let them save up for the things that they want to buy. You can even encourage them to have their own savings money, money for spending and money for miscellaneous things. The earlier they start saving, the better.
- You can also open an account for your child and explain to them that investing their money will help it grow. Let them withdraw some of their money every now and then so that they will get a feel of what it’s like to manage their own money.
- Explain to your child gently, the importance of money and how much money should be spent on certain things. You should also teach them how to talk about money. Which questions to avoid and when to ask etc.
- Explain to your child the use of credit cards or ATM cards. Explain to them the importance of checking your credit report and the benefits they can get if they keep it in good shape. You should also explain to them that they should practice paying their bills on time regularly.
Be easy and patient on them as the topic can be quite difficult to understand. Teach your child a thing or two about financially responsibility to help them hone a better future.
Joy Mali is an active blogger who shares extremely interesting finance management tips over the web that encourages people to manage their personal finances, check credit score regularly and review how credit score changes in different scenarios through a credit score estimator before taking any important financial decision.