7 Ways to Teach Kids About Money

7 Important Keys To Raising Financially Responsible Kids

The job of Parenting can be a very challenging one. To me, it is a fulltime job trying to teach your children to be honest, responsible, hard work and also encouraging them to be kind and respectful to their peers and adults. Sometimes you have to pick and choose what matters most for your children, differentiate between what they want and what they need and stick to it even if they will be unhappy at the moment.

Teaching your kids about money is very important. Kids personal finance and teaching them to be financially responsible does not require any certain age because making money is not specific to any age.

A day is coming when your child will face the big world all alone. It’s your responsibility as a parent to teach your kids about money. Teach them how they should manage their money and why money management is very important in life.

In this kids personal finance article, we will be discussing on seven ways to teach kids about money. They are;

1. TEACH THEM TO SAVE

You can get them a piggy bank (kolo) where they can be saving all the monies they get from people, visitors and even you.  Any little money they get, either in gift or errand tip-off, let the habit of putting it in their saving bank grow in them.

2. MAKE SURE THEY SPEND CAUTIOUSLY

Because they are children, it is very easy for them to get carried away by enticing things which appeal to them. Sometimes, they can easily use their money to buy toys, junks and other things that caught their fancy. What you can do as a parent in this case is to make sure that you guide them to buy things that could be of help to them.

3. OPEN A BANK ACCOUNT FOR THEM

There are some initiatives from banks like Smart Kids Save, etc. It is now possible to open a bank account for your child irrespective of the age of that child. Then from that account, you can even save money that would be enough to take care of their future especially on education.

4. PLAY GAMES THAT ARE EDUCATIVE

This might sound very weird but it actually works and it is a smart way to teach your kids about money. A game like Monopoly is fun to play but it will basically teach your kids about money and financial responsibility. It will also teach them the importance of having money, what happens when you go into debt as a result of spending lavishly. When they lose money several times in the game, it will teach them how to manage their resources in real life no matter how small or big it is.

5. LEAD BY EXAMPLE

Leading by example is one of the most important ways to teach your kids about money. Children learn fastly from their parents and they pick up either good or bad habits from them. If you are a parent who is financially responsible, your kids might pick it up from you. Same as if you are not financially responsible.

6. GIVE THEM FINANCIAL LESSONS

Teens can be influenced easily. It is very tempting as teenagers to buy new items such as new phone, clothes, shoes, some would even want to start using credit cards. Some of the commercials on TV and other media often grab their attention towards a world full of fancy. It is very important to make your kids see reasons why they should spend on things they need rather than things they want.

7.  DISCUSS FINANCIAL GOALS WITH THEM

It is the happiness of every parent to see their children succeed in every aspect. You can discuss about short-term and long-term financial goals with your children.

Discuss with them on how much allowance they should spend every week and how much they must put towards short and long term savings. It is also very important to tell them to save money for charity.

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