Kids who have good financial habits tend to be more successful as adults. Learn how to teach your kids about money so they can grow up to be financially savvy!
Teaching children about money is an important part of raising responsible young people. It helps them learn to manage their finances wisely when they’re older.
| 5 Ways To Teach Your Children About Money. |
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| 1. Start with the Basics. |
| 2. Talk About Financial Goals. |
| 3. Set Realistic Expectations. |
| 4. Be Honest. |
| 5. Don’t Let Them Spend Too Much Time Online. |
Start with the Basics.
You can start teaching your child about money by explaining what money is, why we need it, and how it works. This will help them understand the basics of managing their own finances.
You can open a minor account and make it accessible to them. A minor account normally is a limited transaction account that is completely safe for your kids to start learning.
By doing so, you are letting your kids know about a few basics such as bank account, ATM cards, how to deposit cash and how to withdraw. Once you have these things done, then you can start teaching how to go for savings.
Talk About Financial Goals.
It’s also important to talk with your children about their future goals. Discussing these topics early on helps kids develop realistic expectations and set goals that are attainable.
Show them how to make small goals in the beginning. Like, let them set a goal for a week or a month. While planning you can involve yourself. For example, if your kid wants to have a toy, let them set a goal and achieve it.
Say you make a piggy bank for them, and put it in the leaving room. When your kids do good things, appreciate them with a small reward. Every time they do good things you put a few bucks in the piggy bank.
You are encouraging them to do good things and in return, they are working in some sort which ultimately becomes their goal to achieve. At the end of the month, your kids get the toy they want and you let them understand how goal-setting work.
When they get the idea of goal setting, they will implement it in every project that they venture on. In a long run, kids who have early exposure to goal setting and execution of achieving it usually tend to have an easy approach to any issue as they are used to it. When they grow, it becomes quite easy for them to take on any charge.
Set Realistic Expectations.
Talk to your child about what he wants to do when he grows up. If he has an interest in finance, ask him what kind of job he would like to have. Help him understand that not everyone gets to work at Google or become a doctor.
Being realistic is very important as 99 percent of the job has to do by your kids only. You are just a star that navigates the ship. Ask them what they want to be when they are grown up.
Accordingly, guide them in the right direction toward achieving their goal.
Be Honest.
It’s important to talk with your children about money because it teaches them about life. You can help them learn about money by being honest, clear, consistent, and open.
Yes, it’s for sure money alone can not be the deciding factor in a successful life. But it’s also true that without money you can not sustain a good life.
Don’t Let Them Spend Too Much Time Online.
If you let your child spend too much time online, he or she will develop bad habits. This includes spending too much time playing games, watching TV, or surfing the web.
Being online is common nowadays, you have to control how much your kids are spending time online. The Internet is a necessary evil as all good and bad things are out there. And moreover, it’s addictive you know.
Exposing too much time to it will be detrimental for your kids who are in a developmental stage. If you let them use it, you have to be there just to assist them. If they sometime use it alone, then you have got to set parental guidelines in the system.
So, here is the big question every parent wants to know. Do I have to buy my kid a smartphone? Yes, of course, you have to. Many schools have digital platforms for learning purposes moreover internet is an ocean of information.
You buy them but with precaution. Set a family guideline on the use of electronic gadgets. Set a timeline to use until they are able to think on their own.
Overall being too online has a negative impact on kids who are in a developmental stage. It may affect their motor skill which may lead to poor health. It may also lead to poor judgement in anything they do including goal setting and achieving it might become very difficult for them.