Teaching your kids about money is very important and starting early is not a problem at all. It’s a critical skill that is essential when they become adults. There are numerous ways on how you can teach your children the value of money but one important thing to remember is to make it fun because kids are just kids after all.
Here are 5 effective ways on how you can teach your kids the importance of money:
1. It may sound obvious but it’s a problem that most parents have trouble dealing with. Practice procrastination with your kids. Don’t give in to their wants and desires and immediately buy them something they don’t really need. Instill in their minds that to have something, they should work for it and wait for the right time to have it.
2. Let your child know that money doesn’t come from a tree and that nothing is free. Start letting them understand the concept of budgeting at a young age. They should know money has limits therefore it should be spent wisely and never impulsively.
3. Of course, your children should learn the difference between needs, wants and wishes in order to prepare them for making good decisions in the future.
4. Next, is to teach your kids the value of saving money. It can be in the form of a piggy bank, the envelope method or open a savings account for them. Encourage them to save up for what they want because
5. Take grocery shopping as an opportunity to teach your child about making financial decisions. Explain the reason why you chose a certain brand over the other. It’s also a good way to teach them about discounts and savings.