Teaching your kids about money is important. As parents and guardians, you’re their first example of how money is earned, spent, and managed. To prepare your kids for the future, we put together a list of some of the most important lessons to teach your kids.
Things Cost Money
When your kids want something from the store, instead of buying it for them, help them set a savings goal. Once they save enough, take them to the store and let them pay the cashier themselves. This will teach them to be smarter about what they spend money on because they’ll now know they need money to buy things they want.
Money Comes From Working
Regardless of whether you give your kids an allowance, you should reward them with money for doing extra work. Not chores that should be done no matter what, like cleaning up after themselves or washing the dishes. But if they go above and beyond, rewarding them with a few dollars will teach them to associate money with working hard.
Budgeting is Key
When your children start earning money or receiving it for birthdays or holidays, it’s important to teach them how to manage it. One easy way to do this is having three separate jars. One for spending, one for saving, and one for giving. Teach them the importance of each category and help them divide their money in a reasonable way.
Talk About It
Discussing money with your children may not seem important, but it can have more of an impact that you’d think. It doesn’t have to be a boring lecture. Look for ways to make talking about money fun and interactive. As your children get older, tackle topics more appropriate for their age.
Set a Good Example
Even if you don’t discuss money with your kids, they will still pick up on your spending and saving habits. They will likely observe and imitate you, so be sure you’re setting the right example.
How We Can Help You
The lessons above are a great starting point. But if you want to take it to the next level, set up a Youth Savings Account and get started with the Connexus Jr. Program. This program features an app with fun, interactive games to give kids a better understanding of how to save, spend, set goals, and earn money through hard work. Your kids will love it!
Above all, the most important lesson is to simply be engaged with your children’s money habits. If you’re involved, they will learn.