Talking to your kids about healthy money management now will set them up for a lifetime of financial success. Not sure where to start? Try our handy guide to teaching your little ones about smart money habits!
Start simple. Try teaching your children the value of coins and dollars, encouraging them to save money they collect in a piggy bank. You can start this at a very young age, and then teach how this money is traded for goods and services, plus introduce budgeting and saving.
Go hands-on. Invite your kids to take part in money discussions so they can see how you allocate funds and pay bills. Try taking them grocery shopping with you with a set budget in mind and add up prices as you pick out items throughout the store. If you go over budget, they’ll learn that sometimes important decisions have to be made. They may have to choose food for a family meal over a carton of ice cream or get the generic cereal that week.
Give an allowance. Set a weekly or monthly allowance in exchange for some level of work, like doing chores or getting good grades in school. They can choose to save their allowance money up for a big purchase, like a new video game or a bike, or they can buy a book or toy the next time they visit a store. Either way, they’ll learn the value of money and appreciate the work that goes into earning it, which means they’ll be more likely to spend it wisely.
Of course, the best way to teach healthy money habits is to lead by example. Discussions and lessons are a solid start, but your children will learn so much from watching the way you handle money. Save and spend wisely, and the whole family will benefit from it.