The smart raising of kids is one of the best gifts parents can give to their children. However, parents should try as much to raise money-smart kids. It is because being money smart is an important life skill. Most skills in life cannot be gained overnight; this is why parents have to start training their kids. Below are some smart ways you can encourage your children to manage money well:
1. Educate Children from a Young Age
Education is the key to success, and this does not only include a classroom. A parent can also educate their children to understand money and appreciate savings from home at a young age. When a child understands how to manage money, the child will become a financially savvy adult. To get started, you can introduce basic money concepts to preschoolers. Some children enjoy playing games where they order and pay at an imaginary restaurant, for example. You can then explain finances and related concepts as they grow up.
2. Teach and Learn Through Everyday Activities
There are a lot of daily activities your children can learn from. Some of which include saving receipt coupons, going shopping, paying bills, or checking bank statements. You can make use of all these to discuss money management to your kids. Kids learn a lot when you take them to shopping malls, showing them how you buy things. Let them know the per kilogram cost on the labels and show them how to look for the value of goods. With this, you are teaching your children the benefits of sensible money management.
3. Model Good Habits
To train your children towards good habit, you have to watch your habits. Kids take over their parents’ habits, whether they are good or bad. You can only encourage sensible money habits when you practice it yourself and talk about it to your children. Let them understand how and why you manage your money. Discuss to them how to take a loan and about insurance. Teach your children how to check facts and how to make the right decision.
4. Have a Budget and Say “No”
Let your children list out their wants with price and use the chat to explain to them the importance of budgeting. Demonstrate your actions to them and tell them that we can’t always buy what we want. When you say “No” to your kids, you are showing them that you do not have a bottomless pit of money. This way, they can’t get everything they ask for.
You do not have to buy everything for your children. If any of them wants something, you have to encourage them to save for it. You should always find a way to demonstrate the benefits of budgeting and savings to your children. Your children will value their money, and this will make it easy for them to save money. When you give to a charity, you are also demonstrating the value of giving to them.