Financial lessons are an important part of a child’s education. From simple budgets to savings goals, there are easy ways to make them smart about finances!
Some of the hardest life lessons revolve around money. And, while you don’t want to start your children off too early, it’s important to make them fiscally aware. Instead of waiting until their teenage years, you can get started on teaching your kids about money management now! Whether you draw up a budget or give them an allowance, there are many important money tips for young people.
Our top 5 financial lessons for the whole family are:
1. Do trees make money?
“Money doesn’t grow on trees” might be one of the most important money tips out there. However, given all the things there are to buy, it can be hard for kids to realize money is earned! ATMs push out money and credit cards simply provide it, so it’s important to stress the value of money. Instead of letting the time for financial lessons go by, ensure you teach your children that money is a limited resource.
2. What are the benefits of saving?
Whether it’s a mini tablet or the latest toy, money can be easy come easy go for many kids. Fortunately, once your kids are earning an allowance you can teach them all about the virtues of saving. To encourage this habit, you may even want to match their cash savings on a monthly basis for motivation. Teaching them the difference between wants and needs is one of the best money tips there is! It will also help them understand the benefits of investment.
3. What are the benefits of budgeting?
Even for adults, the word ‘budget’ can be a pretty scary one. However, you and your family can take a lot of fear out of it by discussing money tips for families. If you’re crafting a family budget, plan a night with the kids and go over budget basics. By determining needs and wants, and figuring out what’s left over, you’ll know what to prioritize as a family. While it’s unlikely you’ll be charging your young ones rent, you can still have them test out some tips.
4. What is the purpose of a credit card?
Credit cards are an important rite of passage when it comes to being a financial adult. However, if they’re not used properly they can be the biggest money mistake of all. While you won’t want your kids to abstain from credit altogether, teach them about the downsides of credit. It’s best if they’re not buying anything they can’t afford. And it’s also important that they know how late payments and interest charges can work against them. If they know how to use it, having a credit card doesn’t have to be a poor decision.
5. Financial lessons for kids
It’s one thing to talk to your kids about the rules of money. But, one of the best ways to get them to understand is to put their learning into action! You can even share your own money tips online through FamilyApp.
Shop for Groceries
Whether you want to play at home or the grocery store, have your kids do some shopping! They can even make a grocery list and decide what they need. This will give them a sense of how much things cost in the real world and the value of money.
Create a Budget
When starting out, your children don’t have to have a budget that balances out. But that doesn’t mean they can’t get some learning from writing it up. And, this is one of the best money tips for college students who will need to figure out their finances!
Being financially illiterate in our culture can be quite common. However, giving your children the tools for financial success is key to their development. Do you have some money tips for 2019 to share with other parents? Let us know in our comments! Whether they’re getting an allowance or already savings’ superstars, there are many great ways for kids to learn about money.