As a parent, one of the most important things you can do is educate your children about money. It’s important for kids to not only know what money is, but how to use it and how much value it really has in society. Teaching your kids about money during three important phases in their lives will have a lasting impact that will last them throughout their lives.
Read on to discover 3 ways to teach kids about money.
In early childhood, learn what money is
Young kids under the age of 6 really have no concept of what money is. Explain to your youngster that money is used to trade for things and make sure to point out at the store that things cost money and that you only have a set amount. Use cash as often as possible with your kids so they can get a physical image of what money is and they can watch it change hands.
Early childhood is also the time to learn to count money. You can find kits with fake money to practice counting and making change. Schools are moving away from these basic lessons as society changes to a cashless system of credit and debit cards.
Teach your tweens about saving and spending
During the tween years, your kids will probably be earning an allowance. Teach them about saving and spending by having them set up a budget plan with their allowance. Set aside money for saving and money for spending, and decide which “expenses” your child will be responsible for buying with their earnings.
Teaching your tween the basics of living within their means, saving and spending will help them immensely as they progress into adulthood. Many kids don’t learn this basic lesson and learning to automatically save later in life is much harder.
Teach your young adult about earning money
When your child is old enough to legally work, it’s time to send them into the real world to earn money. Have them get a part-time job or do odd jobs for neighbors like lawn mowing or baby sitting. Learning to earn money teaches teenagers the value of a dollar and it makes their saving and spending habits that you taught them before that much more valuable.
By the time your child is ready to leave the nest, they will have learned to handle money. They will know it’s a real physical thing and not just a number on a computer screen. They will know how to save and how to spend. They will know how to earn and most of all, they will have put all the lessons together to have healthy financial habits that will take them through the rest of their lives.