The earlier a child starts learning about managing money, the better they will be at it when they are older. Unfortunately, many people do not start learning about personal finance until well into their adulthood, often after they’ve made lasting financial mistakes But there are many ways to teach your kids about personal finance as they get older. Read on for a list of great ways to build a foundation of smart-money habits.
Have a “Chore Salary” Instead of an Allowance
An allowance gives children real, tangible money to spend and save as they chose. However, one of the negatives of a weekly allowance is that it can also make them believe that they can earn money without doing work.
Consider setting up a list of jobs for your children that they can complete in exchange for money. By doing this, they can begin to understand the value of money in relation to the time they put in to earn it, making them less likely to spend and more likely to save their hard-earned cash. It also puts them in the mindset of wanting to work for the things that they want.
Create a Bank Account for Your Children
In order to make saving money easier for children, set them up with their own bank account. Consider choosing a bank with an online platform so you have constant access to their spending.This will allow you to keep their finances safe and secure, instead of being in the dark.
Take them to Meetings with Your Advisor/Insurance Agent
Are you a family that regularly visits a financial advisor or insurance provider? Include your children to some of these meetings. This gives them the opportunity to sit, listen, and learn from a professional in that field. Many advisors and agents are happy to include them in your session.
Give Short Lessons on Personal Finance and Insurance Topics
Finally, take time each week to talk to your children about money. Consider incorporating them into your financial choices at the grocery, bank and while paying bills and make talking about money a weekly event. There are lots of great online resources for teaching your children about finance, so why not utilize them to their fullest extent to help your kids have a better financial future?