Have you heard yourself utter the popular phrase, “money doesn’t grow on trees” recently? If yes is your answer, it is a good idea to start teaching your kids about money management. The benefits of teaching kids about money management at a young age can help your kids avoid financial problems down the road. It is important that you teach your kids about saving and taking care of money in a manner that they will understand and if this means making mistake after mistake to learn, then so be it.
Kids need to develop money saving tools while they are young as it will give them confidence in their financial decisions as they grow into young adults. Teach your kids about money management by using any of the following tips and get them on a path towards financial health.
Money Games For Kids
If you want to teach your child about money, start with some money games like Monopoly, Payday or the Game of Life. These are all excellent games that can teach your child about how to use money appropriately, as well as teach them how to save for important milestones in life such as buying a home or paying for college.
Be A Positive Role Model
Kids see and hear everything and they absorb our adult ‘examples’ like a sponge. If they see you purchasing silly items that have no value or see you spending loads of money in the mall, they will think it is ok to spend carelessly. Be a money management role model and lead by example. Make smart purchases and teach them about cutting back on things you don’t really need. Buy things that are necessary for the home or recreational use and if you feel like splurging, only do it sporadically. Teach them that it is wise to keep as much as you can in your bank account so you can afford necessary items.
Encourage Your Kids To Save
One of the best purchases you’ll ever make is a piggy bank. Encourage your child to save by telling them that if they put away some of their allowance every month, they can buy something they have longed for. The next time they ask you for a new bike, remote control car or new teddy bear, remind them that they should save some of their allowance in their piggy bank.
Teach Them To Earn
Kids need to know that money is earned and that it doesn’t just fall into your hands. Tell them about your job and how you get paid. Then ask them if they want to do little jobs for pay. Remind them often that money is earned and not given. If you haven’t started giving them an allowance for doing extra things around the house, it is a great time to start.
Teach your kids how to respect and value money when they are young and you will be providing them with the opportunity to have a healthy financial experience in the future.