The best start in life: how to teach your kids about money
Do you ever wish you knew more about money? Wouldn’t it have been great if things like mortgage rates, credit cards, interest and budgeting were taught in school? It would certainly have made adult life a little easier, and helped many of us make better financial decisions.
However, despite this gaping hole in the educational system, there are ways you can prepare your child for financial independence and help them build a positive and healthy relationship with money. Wondering where to start? Here we’ll look at how to teach your kids about money.
Help them get to grips with saving
Saving money is important. Whether it’s for a house, a rainy day or for their future – check out junior ISAs from Wealthify if you’re looking to give your child the best start in life – however when your child receives pocket or birthday money, the idea of saving it rather than spending it is unheard of.
Luckily they won’t have to sacrifice all their birthday money into savings, you could instead encourage them to save pennies and small amounts instead. Placing them all in a clear jar rather than a piggy bank so that they have a visual representation of watching their savings grow. As the jar gets fuller, they’ll be more excited to add to it. And when that one is full, they can start filling another!
Encourage them to pay for things
Internet shopping has allowed us to stay at home and order the things we want, rather than experiencing a physical transaction. It’s convenient for us but misleading for little ones who may find the idea of virtual money deceiving. When you have physical money that you choose to hand over to pay for something, you know that that money is gone, forever. Therefore, it’s important to encourage your child to head to the register and pay for items.
Set a good example
Making flippant purchases, agreeing to treats and gifts, not stopping to check the price or even budgeting are all bad financial habits you could be passing onto your children. Try to demonstrate restraint when buying things, explain how you have to budget each month and say "no" once in a while.
Teach them to be content
It's only natural for our children to compare themselves to others their age. Whether they're feeling the pressure to have the latest trainers or smartphone, it puts us, parents, in a difficult position. Teach them to be content with some simple lessons. Sure, they may not have the latest smartphone, but they have all the apps they like on it, take great photos and they can make phone calls!
•This is a contributed post