Becoming a parent means that you’ve signed up to teach another human being all you can about life. That means passing on what you already know, and researching what you are unsure of so that you can help and guide your child whenever necessary. There will be endless lessons your children learn as they grow up, with some lessons more valuable than others. One lesson that definitely rests in the more valuable category is teaching kids how to be responsible with money.
For many parents, there can be a real mystery about when is the right time to start teaching kids about money, and what the best way to go about it is.
Just like with many life lessons, there is no cut and dry answer; instead, here are some tips that can help you to wade through the waters successfully.
Extracurricular Math Work
While they probably won’t want to be involved in math problems outside of school hours, it will help them a lot going forward if they’re in tune with numbers a little more.
Perhaps the likes of learning games and other kinds of software could help them out a lot when it comes to their overall comprehension in regards to their math ability.
If they know more about arithmetic and fundamental work, then they’ll have a better foundation when it comes to their finances as they grow. Even smaller online programs like a percentage off calculator could teach them a lot when it comes to significant sums and techniques.
Start having the conversations early
One of the best ways to get started is to do just that, get started.
Start discussing money at an early age so that it isn’t a faraway concept once they are old enough to get a good grasp of it.
Experts recommend that you start discussing money around the age of two years old. At that point, you can start to talk about what a penny, dime, nickel, and quarter looks like, and have them start to differentiate between them.
They don’t have to understand the value at this age, rather they just need to get used to the idea that those objects are money, and what each one is called.
As they get closer to the age of four, you can incorporate games into the mix. It’s as they get closer to six that you can really start to have more meaningful discussions about what money is, and what it is used for.
Give them an allowance
An allowance is another way you can start to teach kids about being responsible.
By the age of six, kids should be old enough to understand the concept that if they do specific chores or jobs around the house, or maybe it is behavior based, they will get an allowance. This also means it’s a great time to open up their first bank account.
You can encourage them to put half their allowance in the bank, and then keep the other half at home to spend on what they like.
Lead by example
Of course, the ultimate teacher of kids is your own behavior as a parent, just by the lessons and information you are giving them.
They look at your actions, how you treat money, and how responsible you are with it as a cue to how they should behave.
If you find your teenager doesn’t seem to have any regard for money and just spends without a care in their mind, perhaps look to your own spending habits and ask if that’s where they got the idea from.
A great way to go about showing them how to be responsible with money is to create a budget for yourself, find ways to save money, and then stick to that budget.
Kids can help you to save money and stay on budget by helping you to seek out coupons and deals.
Upgraded Reviews is a great site to check out as it has lots of online coupon codes. These can equate to big savings, which means you can stick to that all-important budget.
The more they see you taking money-saving steps such as this, the greater the understanding they will have of what a budget means.
It Isn’t Just One Conversation
Teaching kids how to be responsible with their money won’t just be a single conversation; rather it will be many conversations, lessons, and even actions that span over many years.