Maybe you have recently started giving money to your kids or maybe they recently began asking you for some sort of allowance–whatever it is, the moment your children started their financial journey, so should your financial guidance. This money phase is inevitable and might come in a little challenging for some parents, but with the proper advice and the setting of a good example, you might just succeed in creating a financially-responsible individual.
Apart from finding the best savings account for kids, here are 5 most important money lessons to teach your offsprings:
- Teach them to save for a purpose.
If you give your kids what they want when they want it, then they would think that you would easily get them the latest gadget or shoes in a heartbeat. Meanwhile, if you show them that in order for them to get something they have to save for it, then they might start thinking if they really need it, if it is really worth the investment, and if it would do them any good in the long run.
With these considerations in mind, your children might start a rethinking and evaluating their purchase decisions and start making smart decisions.
- Teach them how to earn money.
Telling your kids that they have to save to buy what they want and just giving the the money anyway for free little by little is really not teaching them anything. Instead of just handing them cash every now and then, teach them how to earn money other than their allowance.
Perhaps a dollar here and there if they agree to take up on additional house chores, selling cookies or putting up a lemonade stand during the weekend–these things might not be much, but showing them that there are other smart ways to earn money will give them a better understanding of how to value hard-earned money.
- Teach them how to spend smart.
If your kid sees you splurging all the time, then that is what they are likely they imbibe. Be an example that every purchase needs to be properly thought about and that every penny is important. If you are able to create this kind of awareness, then the impulsive shopping habit will be avoided.
- Teach them what wants and needs are.
It is very common for kids to just want what they want especially if you give in to their every demand. If you don’t draw the line between what is is needed and what is unnecessary spending, then they are likely to invest on things that has no real value. Explaining to them the difference between these two ideas will help them make better decisions during purchase.
- Teach them the concept of sharing.
Along the journey of teaching your children how to save, teach them the importance of sharing as well. Let them know that there are people who does not have that capacity to earn or save money like that and that there is a good time to do a little something to make them feel better like holidays. Keep in mind, it doesn’t always have to be big of an amount to matter.
