20 Nov Financial Literacy for Kids
It’s never too early to teach your kids about money but like with everything else, setting a good example is always the best teacher. Letting your children see you planning a budget, paying bills, and saving for family vacation will form an impression and define their attitude towards money.
Here are other tips for raising smart money managers:
Value of Money
Explain how people earn money and how much different things cost.
Start easy with a traditional piggy bank and let your kids drop any loose coins straight to the piggy bank. Create your very own chic coin bank that your kids will surely love.
Three Money Jars
Set up three jars for your kids: one for saving money, spending money, and for sharing.
Lead by Example
Kids learn a lot about how to handle money by watching you so set a good example and examine your own attitude about money.
Avoid Impulse Buys
Encourage your child to wait at least a day before buying something they “really want”
Make Learning Fun
Classic games like Monopoly, teach your child more than just board game etiquette but also teach them important money lessons.
Let them Earn Money
Occasionally, offer your child an opportunity to make a small amount of extra income by doing an extra chore at home.
Help them understand how budgeting and working with a spending plan works so they manage their money better.
Open a Savings Account
Teach your kids the importance of putting money into savings account where interest is earned.
Explain how you budget the money in the household and allow them to participate in the decision making process.
Teaching your kids the importance of financial literacy will lead to good basic money management skills that will empower them to spend wisely at all times.