Financial literacy is an essential skill for anybody, and it’s better to understand it as early as possible. Teaching your kids how to be money-smart is a gift that they will use when they get older. There are so many benefits of raising a money-savvy kid.
When it comes to raising money-savvy kids, it is important to set a good example.
If you’re receiving parenting payments, having someone who knows how to save money can also help you with the household finances, particularly in creating a weekly pocket money budget. But how can you raise a money-savvy kid?
Here are some things to take into account:
- While the concept of saving may be hard for your kids to learn, introducing it to them at a young age will help instilling in them the value of putting money aside to buy something that they want or to make their weekly allowance last up to the end of the school week.
- Spending is a money concept that may be much easier to teach your kids. When you go to the mall and they want some toys, you can encourage them to compare prices and choose the best deal. They can also decide if they really want new ones or they can just reuse their toys at home.
- Be a good example. Kids emulate what adults say and do. When it comes to raising money-savvy kids, it is important to set a good example. You can let them see you putting spare change into a coin bank. At a supermarket, you can include them in checking prices and teaching them some saving tips such as items that can be bought in bulk or buying produce that’s in season.
- Teach your kids that money is earned, not automatically given. When your kids are old enough to get school allowance, you can teach them how to spend and save, and be responsible for their own money. Also, you can educate them that money is not something they can automatically receive by linking housework and money. For instance, they can get their allowance only if they help clean their room.
- Teach your kids the concept of helping others. Sharing toys with their siblings is a great start towards teaching them the value of generosity and thinking about the needs of other people. Show them the concept of donating to community groups. They can decide what they can donate or sell something to raise funds.
Do you have other ideas on parenting payment and how to raise a money-savvy kid? Share your insights in the comments section.