One of many responsibilities as parents is teaching the kids to feel comfortable with money .It can be hard when you are maybe still struggling to fully master our own finances. Financial health at early stage can help set your kids good stable future on their bank accounts. Feeling good about money can also give them a larger sense of confidence
Here are couple of important money skills that parents recommend and usually teach their kids, starting at their early age 4 or 5 years old.
1. How to save money together
Saving is always more fun when you make it to be a family project. Lets say,instead of going out or ordering at home some pizza, you can just have fun by preparing it together with your kids.Try the experiment and you will see how much savings you will make just from this example.
2. Rise their awareness that they can’t have everything
One smart financial choice is giving up some things, like an expensive new outfit or new toys, so you can save for more important things, like a family vacation. You should start this at their early age so they can slowly become aware that not everything should be bought and to give them reasons why.Well,it doesn’t mean that sometime they will not get their favorite toy,just not every wish will be granted.
3. Teaching them to use their skills to earn money one day
At first,you can show your kids that they can make money as youngsters just for fun and that earning can be used for small wishes to come true(new snickers,t- shirt,toys etc). Young kids can get various experiences,for example setting up the classic lemonade stand, or backing and selling cookies,or delivering newspapers as they grow older.
At this stage, the goal is less about making money than about feeling comfortable trying to save it.
4. An awareness of saving for college
Kids might not yet appreciate the high cost of college since they still do not understand the importance of money, but if you have opened up an account or some other form of college savings, it can be helpful to explain that to them. That way, they can begin to grasp the concept of saving for something that is still far away, and as it gets closer, they will begin to appreciate your efforts too.
5. Make them understand that managing the family finances takes time
If kids never see you paying bills or managing accounts, then they might get the false impression that those things happen automatically. Instead, let them sit next to you when you pay the next water bill or when you log in to your bank account online.
They’ll start to see it as a regular activity, like working out, and one that they should set aside time for.
6. Appreciation for what they have and how to share it with others
The feeling of abundance often starts with gratitude for what we have. Simply taking a few minutes before meals or on other family occasions to express thanks for what we have can help foster that feeling instead of always wanting more. Starting a family tradition of jointly giving to a cause on a birthday or holiday can also help reinforce that feeling.
Ultimately, teaching kids to be financially healthy comes down to the behavior we are modeling for them as much as what we tell them. That means one of the most important things we can do to teach our kids smart money habits is to practice them ourselves. That includes setting long-term savings goals, monitoring our spending so we can put money toward those goals, and investing for our (and our kids’) future.
Financial security, after all, is what can give us the freedom to spend our lives the way we want—which often means spending more meaningful time with our families.