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15 Ways To Teach Kids About Money
Teaching children about money is one of the most valuable gifts a parent can give to their offspring.
Many kids reach adulthood without much in the way of financial sense and this can create plenty of issues further down the line.
However, by educating your kids from an early age about money you can provide a platform that will allow them to make sensible financial decisions in the future.
Read on as we look at 15 ways you can teach your kids about money.
Start saving early
Providing your kids with a piggy bank when they are young is a great way to start them on the savings ladder. Encourage them to put away a percentage of their birthday money or allowance so they learn how their savings can build up over time.
Set an example
It is a pointless exercise trying to teach kids about money if parents fail to adopt sensible financial behaviour themselves. Kids often copy their parents, so if they see you setting a good example they are more likely to follow suit.
Talk to your children about money
Some parents exclude their kids from discussions about money, but this is extremely counter-productive. Including them in chats about finances will help to open their eyes about how much it costs to run a household.
Avoid buying on demand
Most parents have suffered the noise a child can make when they see something in a shop window that they want. Teaching your child the meaning of ‘no’ is an important lesson, helping to strengthen their understanding of the value of money.
Teach them to give
Not everyone is fortunate to have enough money to survive, so encouraging your children to be generous to others is another valuable message. Involving your kids in charitable donations of old clothes or games is a great way to teach them about the power of giving to others.
Show them how to use comparison sites
If you’re going on a family holiday make sure that you involve your kids on every stage of the planning process. Show them how comparison sites can help them make big savings which could then be used to do extra activities while you are away.
Open a bank account
Opening a bank account is a big thing when you’re a child, so do it early in their life to maximise its impact. Make sure that your kid makes regular deposits and explain to them how they can make their money grow through the interest the account accrues.
Do a car boot sale together
Kids grow at a rapid rate, meaning they quickly become too big for their clothes or stop playing their favourite games. Rather than throw them away, do a car boot sale together and allow your child to keep the proceeds on the condition they save the money.
Explain how debt works
Teaching kids the difference between ‘good’ and ‘bad’ debt is another lesson that will stand them in good stead as adults. Using credit wisely can help when it comes to getting a mortgage, but it is important to show your kids how to avoid racking up high interest charges.
Make kids earn their cash
Giving your kids some simple jobs to do around the house in return for cash teaches them that money should be earned. Washing the dishes, walking the dog and cleaning the car are great ways to get them involved in pitching in and has the added bonus that your own workload is reduced!
Encourage them to work part-time
In addition to doing jobs at home, encouraging your kids during their teenage years to get a weekend job is another good life-lesson. Once your kid has to work for his or her money they will have a much greater understanding of how real-life works.
Teach them to how to food shop
Eating out is undoubtedly fun, but it is expensive to do it on a regular basis so get your kids involved in shopping for food. Involve them when you go to the supermarket and encourage them to compare prices on products as you go around the store.
Have fun with money
There are numerous board games and online games that help kids learn how to manage their money better. From Monopoly to Football Manager, youngsters can learn plenty of money skills from these type of games whilst having fun.
Teach kids how to budget
If you’re organising a family event, get your kids involved so they can learn how to plan and budget for something. Show them that blowing their budget on one big thing might prevent them from having a few smaller things that they really wanted included in the event.
Money matters, but it isn’t everything
Many people crave wealth, but it is vital to show your kids that personal happiness is much more important than money in the bank. Having a happy household regardless of your financial circumstances shows your kids what matters the most.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.