Today we have a guest poster sharing effective ways to teach kids about money – welcome to Olfa from Our Family World!
Grown-ups and parents often tend to think that kids don’t understand money or have little interest in those coins. But they couldn’t be more wrong. The kids of today know exactly what those dollars mean and their value. This is good in a way, as the parents can start teaching their kids about money at an early age. And the sooner they develop some good financial habits in them and learn the value of money, the better it will be for them. Those early lessons of money will stay with them for life and they will grow as adults with some good and sound financial habits.
Begin the conversation
Start talking about money even before they’re in school. After all, they see you using dollars and cents and would love to know more. Explain in simple terms about the value of money and how it is used.
Teach via everyday activities
Give them money to do some shopping at the grocery store. This will teach them that some things are more expensive as compared to others. This will also give them confidence about handling money.
Give them pocket-money
Give them a little weekly allowance and encourage them to save. This will get them in the habit of saving at an early age and they will benefit as they grow into adults.
Encourage them to work for money
If you have teenagers in your home, you should encourage them to work and earn their own pocket-money. They will respect the money they earn and spend it wisely. This is a great learning experience for them.
Build a budget
You can encourage them to set a budget for their shopping, gifts and entertainment. They will learn how to manage the funds within their budget and how to wait, learn to save and spend the money at the right time.
Open an account for them
Older kids can have their own savings account. This will help them learn about maintenance, the fees involved and the interest they earn. Many banks have special savings accounts for children and students.
These are just a few simple and effective ways to teach your kid about money and savings, right from an early age. You can give them an incentive for making good savings. Taking these steps early will ensure that your child will grow into an adult who will know how to handle their finances in a healthy way.
About the author
Olfa is the founder of OurFamilyWorld: an online publication for busy parents where she shares wholesome recipes, ways to save money as well as her motherhood journey.