It can be really hard to know when to start teaching your lovely kids about the importance of money and financial literacy. It can be even harder to figure out exactly how to do that. Between cash and cards, checking and savings accounts, and all the other options at your disposal, there are a lot of ways that you can end up simply confusing your child.
Truth is, you might want to improve your own financial literacy as well!
So, if you want to learn more about the many ways in which you can improve your and your child’s financial literacy, visit site, and continue reading below:
Use a jar to save
One of the oldest tricks in the book to teach your young children about the importance of saving is the piggy bank. The one change that we would recommend is finding a piggy bank that is see-through or simply uses a large jar. This will give your children the ability to visualize how much they are saving over time and how their “bank account” is becoming larger and more valuable over time.
This will train them to learn about delayed gratification. When the piggy bank is full, you can ask your children what they want to spend their hard-earned and saved money on.
Set a good example
There are many scientific studies that show that money habits in children are formed as early as seven years old! Whenever you are spending money, keep in mind that their little eyes are watching you and learning from you. If you are slapping down your card every time you go to a restaurant, grocery store, or shop they will notice. They will also notice if you and your spouse are regularly arguing about money.
Show them that stuff costs money
If you are taking them to get new clothes for their first day of school, or even just getting them a snack, consider showing them how much things cost. You can even turn it into a math game that will help them advance their studies in school.
If you have a $20 bill, and you are buying your children $9.99 worth of treats or toys, consider asking them how much money you have left. This will help them understand that money is transactional and that you have to have money in order to spend it wisely!
Give them money for chores
While lots of kids are used to get allowances, it is actually far more useful to your child to pay them for chores that they do around the house. Whether it’s raking the leaves or cleaning the dishes, paying your child for those tasks – when they do them – is far more valuable than simply giving them a weekly or monthly allowance.
As you can see, there are tons of great ways that you can open your kids’ eyes to the value of money and saving. What’s important is setting up a plan so that they are ready to take on the world once they leave the nest!