Children learn everything from their parents, which is exactly why it's so critical that you start teaching your children about finances from an early age. The good news is, it's never too soon to start teaching your children all there is to know about money. If you want to instill good monetary habits in your children, start with these strategies.
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Talking about money with your family doesn't need to be taboo. Learn about topics, strategies, and best practices for having a family conversations about money in this helpful module.
Learn About Family Financial Conversations
The ABCs of Finance: Teaching Kids About Money
1. Set An Allowance
An allowance is a good place to start because it's your childrens' first exposure to financial independence. Since they choose how they want to spend their allowance money, it's a good strategy to teaching them that they can budget accordingly and save for things that they want. Give your children their allowance on a set day at a set time so it's a routine for them.
2. Help Them Create Financial Goals
Sit down with your children and ask them what their goals are. Now, be prepared, their goals may be to buy a bike to buy a movie ticket. If that's the case, that's not a bad place to start. You can teach them the value of having a goal in mind and preparing and saving for that goal. This also demonstrates to your children that you can't just buy things without planning for them. Help them figure out how much they need to save and then give them short-term goals to meet so that they can reach their goal. If you're looking for more financial educational tools for your children, sign up for Biz Kids$'s monthly newsletter which includes helpful advice for parents, lesson plans, and more.
3. Encourage Them To Budget
As more time goes by and your children get more comfortable with the concept of smart money strategies, help them to come up with a budget. There may be a time when they run out of their allowance too soon and are asking for more money. Use this opportunity to teach them the value of budgeting so that they do not have to ask for more money. Instead, show them how they can be financially independent by planning and saving for their expenses. Instilling the value of a budget from an early age is the best thing you can do to ensure your children are on the track towards a successful financial future.
4. Open A Savings Account For Them
When your child is born you can open a savings account for them. As your child gets older, you can encourage them to put any money they get, whether it's from their allowance or a birthday gift, into the account. This will also give you the chance to instill the importance of saving in order to earn a dividend. Keep in mind, as the parent you lead by example, so make sure you are sharing your savings habits with your children so they can see that it is a priority to you as well.
5. Make Educational Shows Fun
There's no doubt that COVID-19 has changed the way that children are receiving their education, but that doesn't mean that children have to stop learning altogether! If you're looking for more ways to educate your children on finances remotely, Biz Kid$ is a fun (and educational) television show about financial literacy that your kids will enjoy. Biz Kid$, which is branded and funded by credit unions, is a great way to teach your kids important financial lessons at an early age. Pop some popcorn and make it a fun family activity to sit down and watch the show together. Not only will your kids love it, but you will too!
Showing your children the value of smart money and saving strategies from a young age is so beneficial. The earlier they learn the importance of keeping track of their finances, the better. Keep talking to your kids about money and one day they will thank you when they realize all that you taught them.