7 Important Tips For Teaching Kids About Money
7 Important Tips For Teaching Kids About Money
Kids learn about a lot in school, but money isn’t one of them. Check out these tips for teaching your child about money.
There are so many things that we need to teach our kids before they leave the nest. This can range from anywhere between doing the laundry to preparing a meal for themselves. They teach your kids all about math and even a few personal life skills in college. However, they don’t teach your kids about proper money management. Here are seven essential tips for teaching kids about money.
Tips For Teaching Kids About Money
Help your children understand that stuff costs money
This is a concept that can be a bit challenging for younger children. They need to not only understand that items cost money, but that some things cost more than others. It can also be helpful to talk with them about why you make some of your purchasing decisions. For example, why you buy the generic brand to save money over the name brand item.
Have conversations with your kids about money
Sit down with your kids and talk with them about money. Let them know what is going on with family finances and get them involved in the budgeting conversations. If your kids are still too young to understand budgets, make them understand what you are saving toward.
Use apps to help teach them money management
Apps can do wonders for teaching your children about money management. It can help them visually see money and help them learn about where the money goes. Apps do a great job of showing the transaction process when cash isn’t the means of payment.
Set a good example for your kids
If you want to teach good financial habits to your kids, you have to set a good example. If you are always overspending and making impulse buys at the store, your kids will probably pick up those same habits. If you want your kids to be thrifty with their money, you need to be thrifty with your wallet too.
Make their saving efforts visible
Savings accounts sound great in practice, but for most children, it’s too distant. Instead, make saving a visible effort for them. Having a clear jar marked savings where they can watch their savings grow is a great lesson for them. If you are worried about them always using their savings, you can have a marker instead of actual money.
Don’t forget to teach them about the importance of giving
It’s not only important to teach them about how to spend their money, but also how to give with their money. This can range from charitable donations to how their spending can help the businesses that they purchase from.
Teach your kids about the opportunity cost of purchases
Opportunity cost is a complicated concept to teach your kids. One great example is by making them understand that by buying something now, they are going to lose out on something later. It’s also a way to encourage good saving habits and to avoid impulse buys.
No matter how old your kids are, you can use these tips to help teach your kids about the importance of money and how to use it well.
