How to Teach Your Kids About Money.
How much would it have helped If you had the chance to learn about financial literacy from an early age? With the ever-changing economic environment, you may have had the knowledge to make smarter financial decisions. As you worry about what Wall Street has to say about the recession or pay to read Marc Chaikin’s predictions on the state of the economy, you can save your kids all these troubles by starting them off at an earlier age.
Here are some simple ways to teach your children about money right from where they are most comfortable- home.
- Allocate clear saving jars.
Parents are doing a great job getting their kids piggy banks; however, using clear glass jars could be a better option. While piggy banks assure you that they cannot break in to secretly ‘withdraw ‘cash, it only makes them more curious. After all, kids will always be kids.
Clear glass jars are better alternatives as they add a visual element to the saving culture. Let your kids watch as their money grows to help them appreciate the importance of saving. Additionally, keeping the jar where they can see it may help nurture their minds to remain disciplined.
2.Help them prioritize and save for the things they want
Although it is a parent’s responsibility to provide for their child, it is also essential to help them grow into responsible adults. Letting your child buy a toy they really want or a simple ice cream pop from their savings empowers a sense of independence in them.
It would not hurt to introduce ideas into their minds every once in a while. If they want more things than they can afford, take advantage of the moment to make them choose what they wish first and encourage them to focus on that. That helps them learn to prioritize needs early enough. You could reward them with something else after they achieve their goals to motivate them to embrace the habit.
- Have regular conversations about money
A 2022 survey in the UK shows that most adults would rather talk about anything else except money. The same study revealed that only 10% of kids want to have a money conversation with their parents. These numbers explain the stress and anxiety facing the broader global community whenever finances are involved.
Charity begins at home. Therefore, starting the conversation in an environment the kids consider safest is more necessary. Explain where the money comes from, the right ways to earn it and how to keep it. Remember to help them understand the importance of always having funds set aside.
- Take them to the bank with you.
Who said you couldn’t bring your kids to the bank? It would do them more good to see you manage your transactions. You could also take them to open a savings account and have a professional explain a little bit about why it is crucial. It improves their financial awareness and introduces them to the banking language.
5.Let them count their cash.
In the spirit of letting kids do things independently, counting their money is undoubtedly one of those things. It is an excellent way to exercise your kid’s cognitive abilities while improving their math. Furthermore, studies reveal that the brain sees money as a substitute for pain and ignites neuronal excitement, which triggers happy hormones.
Your kids are smarter than you think, therefore, do not doubt their ability to understand the basic principles of money. It is essential to equip them with these skills to cushion them from some crucial financial problems affecting most people today. From debt management to wise savings and investments, there is so much for kids to learn; now is certainly the best time.