it is never too early to start teaching your children about good money habits. By instilling good spending and budgeting habits in your children at a young age, you are preparing them for the future.
Helping them to develop good money habits can be fairly simple, so avoid complex lessons until they are older and can understand the significance of money and budgeting.
I once saw a mom and her little boy in Walmart. The little boy was asking for a toy and the mom said: “Do you have your money with you?” and the little boy replied “no” then the mom said, ” I will pay for it but when we get home you need to pay me back”. I was very impressed with what that mom was teaching her child.
People are getting into more and more debt with no plan on how to get out. Children in school and in their homes are not being taught good money habits.
My husband’s parents made him work for his money and taught him the value of saving his money at a young age. Because of that, my husband is very responsible and wise on how we spend our money.
It is not hard to teach your children good money habits. One great way to teach your children good money habits is to give them an allowance. Do not give them an allowance for doing nothing – this can defeat the purpose. Children benefit from learning that money is earned by working.
A kindergartner is able to help with small chores around the house, so put them to work and let them earn their allowance this way. By doing this not only are you showing to them that hard work pays off but you are also helping them with the feelings of accomplishment which helps their confidence to grow.
When you were young did you ever hold a lemonade stand? I sure did and I was so proud of the money I made and I had one every weekend! Help your child set up a lemonade stand and show them how to make the product, market it and sell it. This is another idea to teach good money habits. If nothing sells they learned a valuable life lesson.
Have your children save up their allowance for something that they really want. Whether it is a comic book or the hottest new toy on the market, having your child save up for the item will teach them that nothing comes for free. In return, children also learn that the items you buy them have real value and should be treated as such.
I remember a conversation I had with a friend of mine where she was so tired of her children beating the crap out the toys they bought for them. So she started having them buy
their own toys and she said that having them buy a lot of their own toys taught them to take care of their toys and they were so proud of their toys because they bought them with their own money.
If your child really wants an item, it is also good to help them meet the value of the toy. For example, they can earn the toy by doing certain chores for a month: Keeping their rooms clean, feeding the animals or doing other small chores.
Another good educational opportunity is to expose your child to money. A lot of children nowadays are so used to seeing parents pay with debit and credit cards that they may not know want actual money looks like. Show your kids the different types of money, coins, bills, etc. And tell them the monetary amount for each.
When you go shopping, let your child have a try at paying certain items. This will help them feel quite grown up and give a good lesson in money matters.
Teaching your children good money habits early on in life helps to stress the importance of preparing for a financial future. Oftentimes parents do not instill the proper money management skills into their children, unaware that this is an important life lesson. It is never too early or too late to start teaching your children how to establish good money habits.