It is most parents’ dilemma to talk to children about money. Oftentimes, they are not sure when to discuss budgeting tips, savings and other financial matters to their kids. But it is important for moms and dads to realize and understand that teaching children early about money is important in raising financially wise and responsible adults.
Check out these tips on raising money-savvy kids.
- Be a good role model.
As they say, actions speak louder than words. So, if you want to raise your children to be financially responsible, you should make it a point to be careful with your actions. Remember that you are spending cash right in front of your kids. That is why it’s important that you show them that you are making wise money decisions. Before you pick up a product, explain to them why you are choosing it over other brands. Tell them the factors that go into your decision, like price, convenience, quality, etc.
- Do away with negative statements.
For one, experts say that telling your children that you can’t afford a particular item would suggest that your family is struggling, which could worry your kids. You can, however, explain to them why you are not spending your money that way.
It’s also wrong to blame kids for buying something of low quality. Show them how to make comparisons when it comes to quality.
- Take them shopping.
Start teaching kids about budgeting tips, especially when it comes to grocery shopping. As you go through each household item, explain to them about savings, planning and finding the best value for your money. This helps them realize that every dollar you spend is crucial to your family’s finances.
- Create a reward system at home.
Many people say that rewarding kids with money for every good deed they do is the simplest form of teaching them how to work hard for every dollar they earn. Assign tasks to each of your children and tell them they will get a prize for finishing them.
- Show them the significance of saving money.
Aside from budgeting tips, you should also teach the younger ones about saving the money they earn. Tell them that if they keep their money for a while, they will have more and they can buy stuff with it. That way, they’ll be more eager to work for it. Plus, they’ll realize the importance of setting cash aside.
- Talk some business sense into their young minds.
Experts advise that it’s a mistake to ask children to put all their money in a bank account. Let them think of ways on how they can earn more cash. Selling lemonade in summer or exchanging stuff for money could teach them how to properly manage their finances even at a young age.
- Take your children to the bank with you.
It is recommended by financial experts for parents to bring their children with them to a physical bank. Make sure, though, they are old enough to understand about money matters. Open a savings account for them and explain how banks work. Also, make sure to entertain questions and answer them as honestly as possible.
It is also essential for parents to be transparent with their children about family finances. This helps them understand what makes up your weekly or monthly budget, what your expenses are and why it is important to know all of these budgeting tips.