Teach Your Kids About Money Early for Financial Success Later On
Posted on Thursday, August 23rd, 2018
The current generation of kids are growing up in a world of instant gratification when it comes to money. Not only do people rarely use cash anymore, when something is purchased or paid for, it’s usually done through the swipe of a credit card or via online banking. A push of a button or two on your phone to order something or pay a bill these days. Without actually physically using cash, how do we teach our kids about money early?
- Start teaching about money when your kids are young. Even if your child is a toddler, get them used to the concept of money by taking them to the ATM with you. When going to the supermarket, you can also let them pay for an item so that they start gaining basic concepts.
- When your kids are a little bit older and are able to do basic cleaning around the house, teach them the concept of work by providing a small allowance for the work they get done around the house. This teaches them that in order to earn money, they have to work for it.
- Help your kids learn the value of saving by having them save for specific items. If your child wants a new toy or video game, have them save their own funds for it so that they can understand the concept of having to wait for some of the things they want. This helps them understand that instant gratification does not, or cannot always happen when they want something.
- Teenagers often like to impulse buy if they like something they see. During the teen years, it’s the perfect time to teach them how to comparison shop. For example, if they want a shirt that they see, have them shop around to see if they can find it for a better deal elsewhere. This helps them realise that research can help them save.
Another important point is to start teaching kids to budget as early as you can. Even if you use a toy cash register, play with them to help them see how much money is needed for general expenses and have them write down what they “spend” every day, even if it’s on items that you make them “play buy” from around your house.
While your toddler may not need a financial planner just yet, as your teaching your kids how to financially be successful, it’s also a great time to get in touch with a financial planner yourself to ensure you’re getting the most out of your money.