WHY IS LEARNING ABOUT MONEY IMPORTANT?
People that are unaware of how to properly manage their funds may find themselves buried in debt with what seems like no escape.
TEACH YOUR CHILD BETTER MONEY HABITS IN 3 EASY STEPS
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It is extremely important that we take the time to teach our children how to properly manage money, and there are some steps you can take to do that.
TALK TO THEM ABOUT MONEY
One of the most beneficial ways to teach children about finances is to talk to them about your money.
Your children will learn based on your money habits.
The more you discuss money and financial habits with your children, the more questions they will have for you.
When you start sharing more complicated concepts your child will start to learn more about why life insurance is important, or what car insurance is for.
These are concepts that should be understood prior to having to deal with them on their own.
Talking to your kids about money doesn’t have to be an incredibly formal lesson.
There are several different opportunities that you will come across in a normal day to explain financial choices and the importance of properly managing your money.
Check out the book SMART MONEY SMART KIDS. In this book, Dave Ramsey and his daughter Rachel Cruze equip parents to teach their children about spending, saving, and giving.
HOW DO YOU TEACH KIDS TO SAVE?
START A SAVINGS ACCOUNT
One of the best ways to teach your kids the importance of saving money is to open a savings account for them.
There are several bank branches that offer savings accounts made for kids and they are great to use as a teaching tool.
Depending on the type of account you and your children open, they may receive a debit card to use.
While it may seem a little silly to give your kids a debit card, it’s an extremely important way to teach them that using a debit card isn’t just spending imaginary money.
At the end of every single month, you can show them the statement from their account and show them how much they spent.
This is a good time to discuss wants vs needs.
LET THEM WORK FOR MONEY
Giving your children chores to complete for an allowance is a great way to teach smart money habits.
Assign your children chores they can do each week and pay them for completing them properly.
This will show your children the value of money and hard work and show them that money doesn’t just grow on trees.
It is important to teach your children better money habits, as these lessons will benefit them once they reach adulthood.
You may also like this post on ALLOWANCE FOR KIDS: WHAT ARE THE BENEFITS?:
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