As kids grow older, it is essential that they know the value of a dollar. Usually when people say this they are referring to their kid getting their first job. But in retrospect, kids should be taught the value of a dollar and how to stretch it before their first job! Applying the following steps will ensure that your kids will learn how to become financial savvy.
Around the age that your kid becomes more aware of their surroundings and curious about everything, sit them down and have a chat with them about money and finances. First, involve your kids in creating and maintaining a budget. It’s a good idea to do this because the older they get the more money they will want. Second, kids should know how the money is spent. This will allow your kids to be more sensitive to money limitations, and maybe not ask for that really expensive toy in the window. And third, kids should know approximately how much money is coming in, and how much has to go out to maintain life. When kids know this information, they will be more sensitive to your role as the provider.
Knowledge about financial obligations might encourage kids to find ways to earn money on their own at a reasonable age. Not only will teaching your kids to become financial savvy be beneficial to them, but it will also encourage you to practice what you preach. In this economy, it’s always best to learn and save together as a family.