Teaching Kids About Money: How to get your children to learn about the value of money, how to save and invest and spending wisely as well as making it and getting it.
Setting good financial examples for your kids is a good way to show them how money, savings, and even loans work. You can use the tips below to ensure that your family is using money wisely. Plus, you can teach your kids some good lessons about money that they need to know. You cannot expect your children to turn 18 and suddenly understand money. However, you can teach them about money as they grow.
Don’t Spoil Your Children
You should not spoil your children to the point that they do not understand the value of the dollar. Some parents buy things for their kids because of guilt. Parents who grew up with very little money may buy toys, clothes, and other items for their kids because they want their kids to have the things that were lacking long ago.
However, kids should know that everything has a price or value. You can teach your kids that some items are too expensive. Plus, you can tell your kids that their birthday or holiday is coming up. Your kids need to hear to word “no” more often than not. You are not being rude to your kids, but they need to know that they will not get everything they want.
Talk About Money Frankly
You should talk about money as frankly as possible with your kids. However, you should not reveal every little detail to your kids. Your kids do not need to know how much money you make, how much debt you are carrying, or how much extra money you have every month.
However, you can talk to your kids about fitting expenses into your budget. If your kids know that some items do not fit into your budget, they will understand that a budget matters. If you are self-employed, you can show your kids that you need to make money every moment during the workday in order to pay your bills.
Additionally, you should let your kids know when certain things are too expensive. This does not mean you are not buying things that you need. You are showing your kids that it is ridiculous to spend $4 on a can of soup when there are can on sale for $1 apiece. Little things like this teach your kids how much common items cost. Moreover, your kids will understand when certain things they ask for are actually expensive.
You are not teaching your kids that they get nothing. You are teaching your kids how to set priorities, when to ask for certain items, or how long it would take to save for big-ticket items.
Talk To Your Kids About Jobs And Savings When They Are Young
You should talk to your kids about savings and investment when they are young. Again, you do not need to tell your kids how much money you have saved or what your investment portfolio looks like. However, you can tell your kids to use an app to save pennies, to invest in a simple app that does most of the work for them, or to look at future careers that provide a good retirement.
Work With Young Adults On Jobs And Savings
When your child first gets a job, make sure they know about creating their own budget, saving money, and even a retirement plan. High school-aged kids should understand the ups and downs of borrowing money and how to avoid digging themselves into a hole. Teach them about credit cards, mortgages, direct lender installment loans for bad credit and good credit, and how their credit score may affect rates and terms of loans should they ever need one.
Moreover, your kid needs to know how they might finance a car or buy the car outright. You can start showing your children how they might shop for a home, how to write a check, and how to negotiate their salary with their boss.
Teaching your kids about money should be a lifetime of learning. Teach your kids about money every year, and make sure that they have a clear understanding of the value of a dollar, how jobs work, and how to save. Use the tips above to make money easy to understand.