It’s important to demonstrate the value of money to your kids. Keep reading for money lessons: 5 key ways to teach your kids about money.
It’s never too early to teach your kids about money. With millions of Americans in debt, money lessons are crucial to ensuring you raise money-conscious adults.
While schools teach your kids about fractions and history, they don’t spend time talking about how to handle money. Educating your children on the importance of money and how the decisions they make now will impact their future helps them be successful long-term.
1. Lead by Example
No matter their age, your kids are always watching what you do. Research has shown that the habits children create prior to age 9 are unlikely to change. This is why it’s important to show them what a healthy relationship with money looks like.
Whether it’s using cash instead of your credit card or talking with your significant other about finances, being mindful of the attitude you have towards money creates healthy habits for your children.
2. “We Have to Wait to Buy This” Mindset
Teaching your kids to avoid impulse buys is a great way to breed contentment and money consciousness.
Each time you shop, acknowledge the items you’re going into the store for and nothing more. This solidifies that each time you go into a store isn’t an excuse to treat yourself to additional items. It also teaches children that often you need to wait and save for the things you want.
3. Educate Them on Credit Cards
Credit cards make it easy to spend money without seeing it leave your bank account. Set the expectation that swiping your card for every purchase isn’t a smart decision by incorporating cash into your spending habits.
This is also a great time to teach them about the danger that credit cards present by creating debt that could impact them for years to come.
4. Help Them Set up a Bank Account
Setting up a simple bank account for your children at a young age helps instill money responsibility and the importance of saving for the things you want. You’ll also be able to talk them through the different aspects of a bank account including writing checks, earning interest on the money you have in your account, and spending wisely.
5. Make Them Earn Their Money
Giving children an allowance is a common practice in many households. While this does help promote financial responsibility, it also teaches your kids that they can earn money by exerting no effort at all.
Having a list of tasks that they can perform in order to earn money teaches them that they have to work hard to earn money. If they’re older, but not old enough to have a job, you might also consider pay stub creators that breaks down the tasks they completed and how much money they earned for each task.
It’s Never Too Early for Money Lessons
If you don’t spend the time teaching your children money lessons, they’ll learn how to handle it on their own. This can result in debt, financial instability, and more questions than answers.
Give your kids a headstart and educate them on how to be successful and responsible with their money no matter their age!
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