Even though your children may learn a bit about money in school, ultimately, it’s up to their parents to make sure that they have a healthy relationship with their finances. Since children look up to their parents as their greatest example, it’s important that you pass good habits unto them.
The way kids handle their money can often carry on into their adult years and impact their credit report. It’s important that you set them up for success. Here are some of the best ways to teach your children about money.
1) Give Them a Piggy Bank
A fantastic way to introduce your child to the concept of saving money is to give them a piggy bank. A piggy bank will allow them to start putting small amounts of money away for something that they really want.
Rather than simply buying a new toy for them, encourage them to put money away regularly to learn the art of financial discipline. Learning the value of earning what it is that you want in life from a young age will be incredibly valuable.
2) Teach Them Basic Math
Try to get into the habit of encouraging your child to practice basic math regularly. Practice counting noodles or beans, and get them excited about counting. When they understand basic addition and subtraction, money becomes much less intimidating. With a great foundation of math, they’ll have a much better understanding of how finances work later on.
3) Get Them Involved With Bills
As your children get older, get them involved in helping with the bills. Let them look over the household expenses with you every month so that they know just how much it costs to live. You can even allow them to help you pay the bills with the family bank account. Doing so will help them better prepare themselves for the day when they leave the nest.
A lot of children leave home with no concept of how much life costs. You’re not doing them any favors by letting them go into the world with an unrealistic impression of how much it costs to be an adult.
4) Be a Good Example
It’s easy to tell other people what good financial habits are; however, it’s even more beneficial to show them. Give your children a positive example of how to be responsible with your money.
Children are known for being sponges and adopting whatever they see. Practice being frugal and responsible with your own money, and you’ll find that it rubs off on them. The better habits that you can demonstrate throughout their childhood, the more likely they are to emulate that behavior once they are grown adults.