Financial literacy is becoming more and more critical in today’s world. And for parents, it’s never been a more important skill to pass on in order to foster positive financial futures for their children.
Teaching your kids basic financial literacy skills might seem like a daunting task, but instilling financial habits like saving, understanding the importance of money, and being entrepreneurial are easier to relay than most might think. Get your children started on the right path toward positive personal finances.
How to Teaching Kids About Money
- Explain Money’s Importance. While stressing the fact that money can’t buy everything, explaining the role that money plays in life is crucial at a young age. One way to exhibit this to young ones is helping your children set goals and illustrating to them that in order to achieve these goals, they will need money to get there.
- Make Savings Second Nature. Many adults lack sound saving habits. If you encourage your children to save at a young age, however, saving can become an instinct rather than a chore. Mandate that they split money received into categories for their goals, the future, and giving gifts or donations to others.
- Foster an Entrepreneurial Spirit. From a lemonade stand to a neighborhood lawn-mowing service, support your children’s entrepreneurial endeavors from day one. Not only will this allow them to start learning about money management at a young age, it will help them to build a strong work ethic for the future.
- Take Regular Trips to the Bank. What better a way to expose your children to money at a young age than a trip to the bank? Many banks are more than happy to meet with you and your children to open a saving account. Over time, this can even translate to a checking account – with adult supervision, of course.
- Be a Role Model. Last, but certainly not least, be a role model for your children when it comes to managing your personal finances. Avoid overspending, set aside a time each week where they see you actively managing your finances, and always lend advice or answer questions when needed.
One day, all of these and other financial lessons will impact your children for the better. And it’s never too late to start teaching your children about positive financial management.