It’s natural to teach your children about good manners and safety. Let’s face it, it’s important or things can quickly get out of hand. Children are curious and will want to look at things and investigate everything. This can lead to accidents, so obviously, safety is a big thing. Parents don’t want their children running around cursing and swearing or being rude, so manners is another important early lesson.
But what about money? Money is a big issue in this world, but it can be difficult to teach children about it. It’s a good idea, just like with manners and safety, to start at a young age. Here’s a guide to help you teach your children about valuable lessons in money and debt management.
1. Start Them Early
Each child’s development is different, so there is no set age. You will have to use your discretion. Teaching them about money must also be tailored appropriately for their age. Once they learn to count and start talking about money in family discussions, it’s a good time to get deeper into the topic. Teach them about both spending and saving.
2. Give Them Some Money
You can give your kids some money and see how they handle or manage it. Work within your budget. If they buy something and spend every penny on it, then realize there’s something else they want as well but don’t have anything left, it’s a good lesson for them to learn. They will learn the consequences of overspending firsthand. You can reinforce certain points by explaining how they can prioritize, or wait one month to get that “other” thing they wanted. They can learn to save for something they really want for 3 or 4 months. There are many little lessons they can learn with firsthand experience at an early age which will stay with them forever.
3. Don’t Spend Immediately
You can teach them not to spend money the moment they receive it. Instead, before you do your shopping, create a budget and let them be involved in the process. Make a list of what you want to buy, then do some price comparisons, perhaps get some coupons and save some money. You may consider giving them the savings. This will teach them that hunting for bargains is a good thing. Your child will learn that taking a bit of time and planning can save money and is the only way to go.
4. Learning Needs And Wants
Children must learn to occasionally take no for an answer. Even as adults, we are all occasionally given no as an answer, so it’s good for kids to learn this early. Teach them about sensible spending decisions. If they want some new toy or game which is really expensive, you can try to explain to them that for now, it’s not possible. Try to make them understand that it’s something they don’t need but just something they want. Instead, they have to save the money to go on the school excursion, for which they need to save.
5. Teach Them Sharing
If you give them money, you can teach them to share a portion to help others as well. This will help them to turn into fine adults with guidance from you. They will learn that money is not just about spending, but helping others in need. Imagine how proud you will be if they gave a small amount to charity. Do let them know how proud you are of them and even reward them for it – and yourself as well. It’s fully deserved!