Most parents want their children to learn valuable lessons and skills in life to help them develop. Many children are never taught how to manage their money, which can carry on into adulthood. If you’re interested in teaching your kids about spending and saving, there are a few important tips to follow.
Take the Kids Grocery Shopping
Make it a point to take your kids grocery shopping to help them learn about the price range of different types of food. Explain comparison shopping and how to look for deals or discounts that are available. Help them to understand how to shop by value instead of by brand to ensure that they learn how to save more money with their purchases. Bring a few coupons along to explain how much money you were able to save for each trip.
Open a Bank Account for Your Children
Opening a checking or savings account for your child will allow them to begin maintaining their own money and storing money away. Teach the importance of saving for emergencies or toys that they may want by encouraging them to save at least 10 percent of the money that they receive throughout the year. They can save a portion of their birthday money that they receive from grandparents or the allowance that they earn from doing chores. Helping them to establish specific goals with the money that they save will allow them to steward their money more responsibility and reap the rewards.
Reward Their Hard Work
Reward your children’s hard work that they do around the home with an allowance that they can use to make certain purchases or save. Consider using a kid’s chore tracker that is available on apps that can be downloaded on a smartphone or tablet. Your children can view a list of the chores that they need to complete and the amount of money that they can earn. Once they get paid every few weeks, they’ll learn the value of hard work and how the real world functions with maintaining a job.
Show the Importance of Giving
Teaching your child the importance of giving will allow them to become more generous with the money that they earn. Consider discussing charities that your child can give to or if they want to tithe 10 percent of their money to their church. They’ll eventually learn that the money that they give helps others around them, which can feel rewarding.
Avoid Impulse Purchases
When your child wants a new bike or a jewelry box, it’s important to avoid purchasing the items immediately when you want to treat them. Impulse purchases will eventually teach kids that they can get whatever they want quickly without having to wait, which can make it difficult for them to learn how to save. For children between the ages of three and five, you’ll want to set the tone early on by creating goals for upcoming purchases. Discuss the importance of using money that is saved and earned instead of relying on credit cards, which can make it easy to accumulate debt over time.
Set a Goal
Choose a toy that your child wants to purchase that they can afford in a few months. Determine how much money they’ll need to set aside consistently before they can have enough to buy the product. If they want a more expensive item, consider matching the amount of money that they save as reward.
When you want to teach kids the value of a dollar and how to manage their money, certain steps will prove to be effective. With the right lessons taught, your child can establish a strong financial standing once they’re an adult.