How and when should we teach our kids about money? The fact is, they are probably already learning the basics by watching their parents. Your money habits are likely shaping the way your kids perceive and value money. Here are some tips on helping your kids develop good money habits:
Giving kids pocket money is a great opportunity to teach children the value of money and help them understand about saving, spending and donating. Giving your children money can help them to make money decisions. They can choose whether to spend their money now or save it up for something bigger.
Saving or spending money
Teaching kids the value of saving money versus spending money is important. Here are a few different approaches to think about, to encourage the idea of saving some of their pocket money.
- For younger children – try 3 jars - for saving, spending and donating and your children could put money into each jar. This method helps your kids understand the difference between saving and spending.
- For older children – introduce a budget – encourage your child to draw up a budget and decide together how to split up the pocket money.
- Investing - You could consider investing a small amount of your child's pocket money.
Getting a part-time job is a great way for teenagers to develop new skills and learn responsibility while making their own money for the first time. Teenagers starting work will get the chance to learn lots of new skills:
- Active listening
- Problem solving
- Team work
- Time management
The great part is they’ll see how easy it is to spend their hard-earned cash and how hard they need to work to earn it back. My first job was washing dishes and it certainly made me think twice about purchases and the difference between ‘need to have’ and ‘nice to have’!
Post a comment and tell me how you’ve successfully started to introduce your kids to money.