Single Momma’s Guide to Raising Money-Savvy Kids
As parents, there are plenty of lessons we need to impart to our children – like learning how to say “please” and “thank you”, apologizing when you hurt someone, and the importance of flossing. But for some parents, there’s one more valuable lesson they often neglect to teach their children about: managing money.
It’s never easy to talk about money–especially to kids. But sheltering your children from the grown-up realities of money will not help them make sound financial decisions in the future. This could put their financial wellness, and even yours, at risk.
So how can you avoid such fate? Pass on good financial habits to your children! Try these tips to raise money-savvy kids.
Start the Money Conversation Early
Some parents are often reluctant to talk to their kids about money, often entirely avoiding the subject as much as possible. But this could do more harm than good. Children who grow up without a clear understanding of the value of money and how to use it may experience financial troubles in the future. That’s why it’s vital to be open about the subject as early as possible. And you can start by simply answering your kids’ questions.
You may be surprised at what they already know and the concepts you think they know but actually are still unfamiliar with.
Give your child an allowance
Sometimes the best way for kids to learn about money is by letting them handle it themselves. You can do this by giving an allowance that corresponds to your child’s age. You can also choose to give them money in exchange for doing household chores, such as washing the dishes, cleaning their rooms, or contributing to other family duties. This is a great way to teach kids that money doesn’t simply pop out of nowhere, but is earned.
Let your kids make mistakes
As your kids receive their allowance, give them full control over how they use their money. If he or she chooses to spend the entire allowance on one day, let your child be. The goal here is to let your child make mistakes and learn from them. Kids will learn a lot from the decisions they make, instead of being constantly lectured or reprimanded by parents.
Set a good example
Even if you’ve had hours-long conversations about money management with your kids, your efforts are still bound to fail miserably if your children don’t see you practice what you preach. So it’s important that you set a good example.
For example, if you’re explaining the importance of saving to your children, make sure that you have a rainy day fund to show for it. Or if you want your kids to be smarter about their spending, share your past spending mistakes and the consequences and lessons you gained from them. Use every opportunity to be a good role model to your kids and demonstrate the benefits of becoming money-savvy.
Remember, financially confident kids turn out to be financially responsible adults. So make sure to keep these tips in mind to help your children enjoy healthy financial futures.
Mari writes for Loansolutions to help educate people in making informed-decisions on taking out loans and becoming responsible borrowers. Being the COO, she feels it is her social responsibility to do so. Learn more from her as she shares tips, advises and stories on finance. Also, she’s fond of 9GAG, so you might read some random stuff over here.