Money is important, it can be your best friend one minute and your worst enemy the next. However, not teaching your children about money is doing wrong by them. Money habits are often passed down through generations. If you’ve been taught good money habits, it’s your duty to pass the information on. Like many of us, we were not taught properly and so, unfortunately, history is on course to repeat itself. But this doesn’t have to be you and more importantly, it doesn’t need to be your children. Here are five ways to teach your child about money.
For toddlers and young children, use a clear piggy bank.
Use a clear piggy bank or jar for the simple fact that it’s transparent. Motivation never hurt anyone and if you can get your child to get excited to see their money increasing, it will make it easier for them. Provide praise when they save and encourage if they stumble off course. Above all, have fun with it!
Be the example you want to see in your kids.
“Do what I say, not as I do” Please don’t be this Dad. Whether you like or not, your little one(s) watches you. They will begin to pick up on the idea that Dad is not good with his money or on the flip side if he is great with money. Set the standard with your coins and you’ll be proud of how your children handle money in the future.
Let them do it
“Today, we’re going to the shop” Ask them to bring money but don’t tell them how much to bring. Let them pick out whatever they want and then ask them to pay for it using their money. Whilst your children are away picking, tell the cashier the lessons you’re trying to install. Most of the time, they will have the patience. Allow your children to physically past the money to the cashier after working out how much to pass over. If they don’t have enough, have the cashier kindly explain that they don’t have enough money to buy this/these items. You get the gist…
Pay them to create value
Read the subtitle to again, it doesn’t say “pay them to do a job” By all means if they do chores, reward them but don’t just create a culture where they do a job to get paid. It’s important to also spark their entrepreneurial minds. There are many ways to create value. If they have an idea that’s feasible to get behind it financially and encourage them through adversities.
Give them the responsibility
Help them to get a job. Keyword, help. Teenagers have a lot of free time and so they can spend it earning, something they love so much. Another way to add responsibility is to let them manage their own bank account. By this time, they’re young adults and so it’s time for the sugarcoating to stop. This can be a major challenge for parents especially for a relationship between and father and daughter but it’s imperative for their development.
Parenting is teaching, it’s important to have these money talks because in this world that we live let’s face it Dad, money talks. So talk to your child.