FAMILY FINANCE | TEACHING YOUR KIDS GOOD MONEY HABITS

teaching kids money

It can be difficult for parents to teach their children about the concept of money. However, if you teach your children good money habits early on, then you will be setting them up for success. There are a number of ways that you can teach your kids good money habits.

Make Kids Earn Their Allowance 

Many parents give their children an allowance without requiring anything of them. If you choose to give your children an allowance, then it is a good idea to make them earn it. Children need to learn early in life that they have to work in order to earn money. Making them work to earn their allowance teaches them that lesson.

You should also set up a bank account for your children and have them deposit part of their allowance in their account. This will teach them that they have to save for a rainy day.

Set a Good Example 

Children pay more attention to what their parents do than what they see. That is why the best thing that you can do to teach your children about money is to set a good example for them. If you have bad money habits, then you cannot expect them to have good habits.

You will need to set a good example by not racking up credit card debt and living within your means. You will also need to get into the habit of saving money.

Allow Them to Start Their Own Business 

Businesses are not just for adults. In fact, a child who is given the right guidance can start their own business. Many children are able to make decent money with a lemonade stand. Others are able to start their own lawncare business. This is another way that you can teach your children that they have to work for what they want. Additionally, they will develop a strong work ethic at a young age.

Deprogram Them 

The average child sees over 40,000 commercials each year. They are constantly seeing things that they want. However, they are not seeing information about how to manage money. Explain to your children that they will not always be able to buy everything that want. It is also a good idea to reduce the amount of time that your children spend watching television so that they will see fewer ads.

Teach Them How to be a Smart Shopper 

Family shopping trips are a great time to teach your children about money. You can set a good example by buying what your family needs. You can also set a good example by shopping around and using coupons.

Talk to Them About Credit Cards 

Credit cards can be a good or bad thing. If they are used responsibly, then they can help you build credit. However, if they are not used responsibly, then they can cause people get into debt that is hard to pay off. That is why it is important to teach your children about responsible credit card use.

Tell that credit cards should be used sparingly. You should also tell them that credit cards should be paid off each month.

Thank you for reading.


*Disclosure – This is a collaborative post* 

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