Now is the perfect time to begin to teach your kids about the importance of money. Take a look at these 6 practical ways you can integrate money lessons into your daily routine, the payoff will be worth it!
1. Start early!
Kids understand more than you think. Introducing your kids to money as soon as they're able to count will expose them to the value of currency that will jumpstart them into financial literacy. Tailor their exposure to certain financial concepts as they get older, such as how to calculate and sales. Plus, there are countless ways to make learning about money fun and interesting, such as playing games like Monopoly or trivia. As you know, kids are information sponges so the time to start is now.
2. Give your children an allowance
An allowance is one of the best ways to teach money awareness. Try giving them total control over how they spend their money so they can learn from their mistakes. This will instill important lifelong skills such as understanding delayed gratification and how to budget. An allowance could also be given in exchange for doing chores which teaches kids to have stronger work ethics. The main point of giving your kid an amount of cash to play each month is so they can flex their independent and creative muscles for what how they choose to spend or save.
3. Involve them in making major family purchases
Planning a family vacation? Trying to find an affordable car? Why not have your children be involved in the decision-making process. Not only will this teach them the importance of communication when making big decisions, but it will help them learn how to research for better deals. Also, kids typically will be inclined to pick the thing that's the most fun, and we all need more of that in our lives.
What would you do if this car was within the budget??
4. Teach your children to give
It's a universally understood concept that it feels better to give than to receive. Start your kids young and help your them pick an issue they care about, whether it's a charity or helping friends in need so they can set aside a portion of their money for the cause. Kids usually are the best givers of us all, and with money, you may be surprised at how much they will give to what they're passionate about.
5. Help them track their spending
In the digital age, there are countless apps and online money trackers to help you keep your finances organized. If your kids are old enough to use these technologies, have them try it out with their allowance. If you'd prefer a simpler method, have them keep a notebook that details their expenses and written financial goals. As a family, make it a priority to talk about their money goals and how they are doing each month. This helps with accountability. Don't make the mistake of never bringing up allowances until the whole family forgets about them altogether like ours did! Perhaps it was for the best, I ended up burying all my money in the backyard when the allowance ran dry.
6. Communication is crucial
One of the most important aspects of being financially healthy is communication. As adults, the best way to keep track of financial goals is to openly discuss with your partner and family about what you aspire to do so you can move forward together. As a family, take time to sit together for the sole purpose of talking about money. Share stories about when you made financial mistakes in life, or what you would have done differently can help your kids know how to better navigate the world of finance. This can be carried on into their futures, and the skills you teach them now will be of great use for when they will one day have a family of their own.