As we all know, money is a fundamental issue regarding raising children. How to save it; how to spend it; what to buy or not, do I need this or that? And first of all, how to earn it. These are the basics of financial education that every well-educated child should have.
With our current generation, we need to start a little earlier to make it easier.
And how? With 5 secrets to teaching your kids about finances. Let’s get started!
1. Secret #1: Talk about money
No more taboo subjects; money is no longer a taboo subject with this step. First, you have to get the child in the bath. Tell him how you got his milk box, or his shoes, at what price, and how you negotiated. Your child will then know the price and value of his things. Talking about your experience in the real world with bills, purchases, currencies, and current accounts are great ways to open your child’s eyes to the necessities of life and the importance of money. The point is not to scare your child but to help them understand what money is and how to use it wisely. You can also do this with the help of some children’s books suitable for this content. Monopoly is a highly recommended game for teaching your children about the laws of finance that govern the world.
2. Secret #2: Lead by example
Not only do you have to say, but also, some children will understand you better if you show them how to use money. How your children manage their finances depends mainly on you, so be careful what you show them.
3. Secret #3: Set savings goals together
If I said to you, “save your money, it will come in handy later”
Well, okay, but for what?
Children can’t look ahead to next weekend; they need small goals to get them through the day. Set some plans that will make him take responsibility. Example: Let’s say your child wants the latest toy that costs $150, but you give them $10 a day. It’s easier to set up a calendar where you count down the days left and what he needs to do with the money if he wants to get his gift.
See? First, he learns patience, he has a goal, and he’s less likely to spend all his money because otherwise, he won’t get his gift. This brings us to secret #4
4. Secret #4: Don’t intervene when they make mistakes
Let your kids make mistakes! I know losing $10 every week is a big mistake, but when they lose it and don’t have anymore, they will understand that it’s not that easy to make and lose errors. Punishing them won’t help because, at first, the simple fact of not having a gift is one, and waiting until the next paycheck (which, of course, will be cut in half to teach them to manage their pocket well) will be more than enough.
Secret #5 will show us how to teach them not to lose money
5. Secret #5: Put your savings in a corner
Whether it’s a shoebox, a piggy bank, a bank account, or an envelope with a seal (opened at Christmas), your children can put their savings there and not lose them. Moreover, your children will have in mind that they can make more if they save than if they spend, which will benefit you and your children in learning the laws of finance.
You can also read about: Why Do Ordinary People Have Money Problems?