While most parents today try to protect their children and keep them in a safe environment, they neglect a very important aspect that will come in handy for their kids later in life. They do not teach their kids about money. However, the good news is that it is never too late to start giving your children some precious lessons about money. In the end, this subject is one of the most vital in life, and they will definitely thank you for that when they grow.
The truth is that plenty of adults get into trouble due to a lack of financial knowledge or due to a lack of financial skills. However, most of them did not have the luxury of being taught about the monetary system from a young age. If you want your children to be successful in life, it is imperative to impart your precious financial knowledge with them and teach them the importance of establishing good financial habits. However, teaching children about money is not as easy as teaching an adult. That’s why it is important to take a look at the following tips.
Here are 5 extremely useful tips for teaching your kids about money.
Take your Children Shopping
You can easily teach your kids about money by taking them with you when you go to the mall or to the grocery store. Make sure to tell your kids the amount of your budget and let them help you buy the right items for the household. Make them understand that each object comes at a different price. A 10-year old can even take a calculator and help you keep track of your spending.
Play Games that Involve Money
Another simple method to teach your children about money is to play with them games that help them discover the true importance of money. Board games such as The Game of Life or Monopoly can be game changers for them and can also help you enjoy a perfect time together, as a family. Some other amazingly useful board games that treat this subject are Cashflow 101, Payday, Millionaire Maker Board Game and Puerto Rico.
Give them an Allowance
When it comes to giving an allowance to your children, we need to consider both the positive aspects and the negative ones. However, the pros far outweigh the cons. Some of the advantages of giving an allowance to your kids include:
– Teach them about responsibility, finances and the consequences of making wrong financial decisions.
– Help your kids better understand the connection between work and payment.
– Helps them gain more confidence in their skills and enables them to enjoy the satisfaction of buying toys or video games as a result of their labor.
– Motivates your kids to accomplish their daily tasks.
The following are some disadvantages of paying your children an allowance.
– Your kids might think that they should be paid for everything they do around the house. Moreover, they might think that work is synonymous with money, which is not necessarily true. Work also means pleasure and satisfaction. Instead of satisfaction, they will start to associate work with money, and pretty much nothing else.
– Kids might get to think less of money when they grow up: according to several studies, most kids who receive an allowance become people who spend more money than the rest. However, that might not necessarily be the case in your family.
All in all, giving your children an allowance is a smart decision that can help them consider money more seriously. However, when doing that, try to make them understand that they should not always help you for money.
Go with them to the Bank
Another sure way to teach your children about money is to take them to the nearest bank and open a savings account. Explain them that their money will continue to grow after you leave the bank. This will make them stay focused on saving money in the long run and not just spending them.
Teach them Generosity
Lastly, one of the most important lessons about money is that they are not as important as people are. Tell them about charities and encourage them to give money to the poor or to foreign charities. Show them that love, family relationships and friendships are much more valuable than money. This will set them on the right path in life and will help them become people of character.