A lesson that is always good to teach children is how to use money wisely. From a young age, kids are curious about money because they see their parents and other adults use it daily. They think about what money is used for and how it works because it is something they aren’t used to yet. But it is very important to teach children the importance of money early on so that they can learn ways to handle money at a young age.
Allowance is a great way to teach kids how to manage their own money. They can earn a certain amount of money for a week of chores, giving them a sense of work ethic and ownership of household duties. If they do more than expected or asked, maybe even a little bit of bonus money is a good to motivate them to work harder for more money. Allowance teaches children how to save money as well. Sit down and talk to your child about saving for a particular toy that they have been eyeing for a while. Teach them how to save up for the toy so that when they get that toy they don’t use all their money.
Give your child a wallet and/or some sort of bank to put their money in. Teach them to have some in their wallet that they can spend “now”, and the money they are saving goes in a special box or piggy bank for things they are saving up for. It is good practice for them to use these tools so that when they go to open their own bank account for their first job, it is a somewhat easy thing to understand.
Have your child start saving for college at an early age as well. Give them a check for birthdays and other holidays that you seem fit and tell them that money is for their college fund. Having that money saved away will help you and your child avoid any more debt than you need to have. It also gives your child a bit of ownership in their college process to see themselves saving up for school.
What are some tips you have for keeping your children financially savvy?