How To Teach Young Children About Money So It Sticks With Them – Part 2
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posted on Nov 6, 2020
How financially literate are your children?
But if you want your children to know how to successfully manage their money when they get older, taking the time now will be worth it.
If you missed part one of this money tips for children, you can read it here, otherwise, let’s proceed to part 2.
Bring The Kids In On Family Budget Talks
It has been found that one of the best ways to teach your kids about money is to bring them in on family budget discussions.
By doing so, they will see how you responsibly handle all of life's pile of bills and issues.
Children naturally want to emulate their parents so they will start to think about spending and how to minimize it.
These money talks should be casual and can even take place at the dinner table.
If your kids are too young to really participate, that’s fine. The goal here is to simply get comfortable talking about money as a family without stigma or stress.
Paying The Bills Online? Let Kids In On The Process
Budgeting and taking care of bills can be a headache. Why not bring your toddler in to lighten the mood? You may be rolling your eyes, but it's doable.
By carrying your children along while you pay bills and monitor your investments online, they will begin to pick up skills you might not even teach them formally.
Allowance Shouldn't Just Be For Fun Stuff
Allowance should be issued with the understanding that some of this money can be on fun stuff, but some of it also has to go towards covering needs. This lesson can intensify as kids get older.
When deciding how much allowance to give, you’ll want to be sure that everyone understands what the allowance must cover. Is it school lunches? Snacks? Computer games? Extracurricular activities?
For older children, you may want to add clothing or other bigger ticket items to the list,” says April Lewis-Parks, a mom and the director of education for Consolidated Credit.
Always write it down initially so there are no misunderstandings later.
If your child is meeting their saving goals, consider throwing in a bit more cash the next week.
Incentivize not spending their allowance by giving them extra money if last week's money is still around.
Kid Blew All Their Money And Needs More? Seize This Teachable Moment
Many parents can relate to this scenario: your kid had money, but they spent it all at the toy store. Now, you’re at the toy store again and they want something but they don’t have the money. What do you do?
Don’t cave. Instead, seize this “teachable moment.”
Teach them that when money runs out, it runs out. It will be tough in the moment, but in the long run you are teaching them to live below their means — and that’s the only way to win with money.
Part 2 Conclusion
We live in a very materialist world. From commercials and advertising to peer pressure to our human ‘wants,’ it can be very difficult to save money. It is never too early to teach our children basic money lessons.
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