It is never too early to talk about money in the family and help your kids learn to make smart financial decisions that will take them further in life.
If you have already embraced frugal living and have taken it to the next level, collecting coupons and checking discount sites regularly, you might want to pass on your skills to your kids as well. It is never too early to talk about money in the family and help your kids learn to make smart financial decisions that will take them further in life. You need to be aware of the peer pressure in school and make sure that your family values are strongly instilled in your kids. Find out more below.
Play Money Games
You can create your own games, or simply opt for Monopoly or other popular money games. You will have to teach your kids to make smart strategic decisions at an early age. When they are toddlers, take your time to set up your own toy shop and handle the till, so they understand how things work and that everything has a price. You can even get them to help find the lowest price for a certain product online. Chances are that they will be quicker than you.
Talk About Money and Budgets Early
There is no such thing as too early when it comes to budgets and money. You will have to be open and honest with your kids, and explain to them that you need to work for the money to spend, just like other people. This will help them understand that if they want to get on in life they will need to look at the prices and earn enough to buy what they want. These family money principles will help them understand the general rules of society, as well.
Let Them Work Out the Prices
If you go shopping with your kids, you will be able to give them small maths quizzes and involve them. Let them work out the total saving on discounted products, or the average price of items. Ask them to find the most expensive and the cheapest product in the isle, so they learn how to quickly process information and improve their maths skills at the same time.
Encourage Saving and Get Them a Separate Account When They are Older
Once your kids are older, you can get them a checking account or set up a savings book, so they can put away their Christmas money or even earn interest. You can compare the different bank accounts for kids on the internet, or – if you would like to help them understand accounts better – go with them to open the account together. It might also be a good idea to find a financial literacy training for kids so they can understand the basics, such as how savings and interest work, what the risks of credit are, and how to invest safely.
Teaching your kids how to save and make the most out of their money will help them achieve their goals easier. Whether they will save up for college or get a part time job to pay for their first car, you will know that they are on the road to financial independence.