5 ways to teach kids about money
No one wants their children to be in debt and in distress? You certainly do not want them owning a house they cannot afford, piling credit debts and adding a student loan! Most average adults are more or less slaves to debts and impending installments.
If we only depend on the schools to teach our children about the value of money and the disease of debt, then they might end up where you are right now. The responsibility of teaching children about money is totally yours and yours alone. Learning about money matters can begin as early as three years old!
Here are five ways to teach your kids about money:
- Use actual money: It may be more inconvenient to use as a teaching tool than play money or digital money. Using real notes and coins will enable them to make the connection right away.
- Money Talk: You will need to talk about your budgets and finances in front of the kids. That way, they are aware of what is happening within the family. There is no need to keep the family finances a secret. If you can’t afford fancy vacations or extracurricular activities, the children deserve to know why.
- Admit Your Mistakes: You can talk about the mistakes you made with your money, what debts you incurred and how you paid those debts.
- Hard Work Pays: Show your kids how hard you work so they can work for money. Money is not free and life is not always fair. They could learn to sell their things or do jobs to pay for their iPad.
- Saving: Talk about discounts, coupons, or app giveaways so you do not have to spend all that is budgeted. Have your children earn money for chores and learn how to spend some of it and how to save some of it for a special purchase.