Among the values you want to teach your children and teens, using money wisely most likely ranks at the top of the list. After all, you probably know at some point they will be faced with expenses when they go off to college, or when they one day want to buy their own house.
As a parent, you should know that your child will notice how you handle money, and the best financial education you can provide for them is leading by example. There are three ways you can teach and instill good financial management skills in your child and have them ready to take on big tasks when they get older.
Get Them in a Habit of Putting Money in a Piggy Bank
Piggy banks are not just fancy toys that you or your child’s grandparents get kids for their birthday or Christmas. Having your child grow the habit of saving money as opposed to spending it goes a long way when they get older because building up savings can help them steer clear of debt. It all starts with the piggy bank when they’re very young as US News demonstrates in this article. As they get older, you can get them in the habit of depositing physical cash in their own bank savings account.
Have Them Take a Class About Money
Probably no lesson in money management is greater than the old saying that money doesn’t grow on trees. You want your child to have a good financial education about spending and earning money. That can start by sending them to a financial class and letting them practice by giving them a weekly allowance when they do chores around the house.
As they reach their teen years, you should encourage them to get a job. Even if work at a local grocery store or fast food restaurant is limited, you can still encourage them to earn money doing things like yard work for other people or setting up a small lemonade stand.
Involve Your Whole Family in Financial Learning
Sometimes, it’s a good idea to make personal finance and budgeting part of a family activity. As is pointed out by Read To Them, stories written with money management lesson objectives are good ways to involve kids in financial education that they’ll remember later on. There are also videos and games out there that can help them learn good financial skills.
The bottom line is that it’s never too early to get your child thinking about using money wisely. In fact, it’s better to do so earlier rather than later. Think about having them do small things like handing cash to the store clerk and learning that cash is better than credit cards so that they’ll learn to stay within their budget later on. Give them the confidence to live independently when they get older!