7 Things Every Parent Should Teach Their Kids about Money
Children are never too young to learn the value and importance of money. If you are unsure about where to begin discussing this with your child, take a look below at 7 things every parent should teach their kids about money. These tips will help you start the conversation with your child and help them become financially fit adults. Here is how you can get started.
1. Make saving money a priority.
Children need to know that when they receive money, a portion of it should immediately go towards savings. Saving money should always be a priority. Give them examples of why it is important to save money as well, such as emergency repairs, illness, etc.
2. Discuss living within your means.
It is important to be realistic about the money you have versus the things you want. Talk to children about living within their means, and how they should make purchasing decisions based on the money they have available to spend.
3. Talk about how to give generously.
Helping others is important. Talk to children about how they can asset aside money to help others by donating to charities of their choice. Explain how churches, non for profits, animal shelters, etc. all rely on donations, and how they should help when they can.
4. Practice long term goal setting.
If your child wants an expensive item, talk about goal setting. Show how they can create goals by identifying the item, figuring how much they want or have to set aside each week, and how many weeks it will take them to afford the item. This will help they realize that patience and persistence is the best way to buy those large ticket items.
5. Warn about money mistakes many adults make.
Many adults get into the habit of pay day loans, making late payments, and not saving money. Explain why these are dangerous habits to get into, and how they can be quite costly as well.
6. Show how a bank or credit union can help.
Take the child on a bank tour. Open a savings account if you can. Show how the bank will keep their money safe and explain how their money will earn interest. You can even show how the bank offers Christmas clubs, loans, and other valuable financial tools.
7. Model how money needs to be respected.
Money is not easy come, easy go. Money is hard earned. Money needs to be wisely handled. When children think of money in a respectful way, they are more likely to handle it with respect. Model this in your home and see what a difference it makes.
Talking to children about money doesn’t need to be hard. Give these tips a try for talking to kids about money and see how beneficial they can be!
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