Teach Kids about Money
It can be tough to teach your little darlings about money when you are eager to provide for them and give them everything that you didn’t have. It’s like there is something programmed into our brains willing us to show them the value of money, but then our actions let us down when we buy them that toy that they wanted near the till of the supermarket, or we give in and purchase them some sweets when they keep badgering us for them.
To really instil a sense of money education into our kids we must lead by example, and show them that money doesn’t grow on trees. You’d be surprised just how many children have no idea where money comes from, only that their parents have plenty of it. Take a look at these three simple ways to teach your kids about money.
1. Give Them Pocket Money
Even from a young age you can begin teaching your offspring about money. Give them a set amount of pocket money each week and draw up a list of things that you will cover (e.g., meals, one social trip a week, school books, etc.)
Everything else must come out of their pocket money. If they want to head to the cinema with pals for a second time at the weekend, they will need to pay for it.
If there is a particular computer game they want, then they will need to save up for it. Empowering them, and giving them the means to purchase items that they want will soon teach them that money needs to be valued. They may even ask you about how they can make their money go further. If this is the case, sit them down and allow them to be proactive with their cash.
2. Consider a job
When kids get to a certain age, they inevitably want more stuff. They are keen to follow the latest fashion trends, they might want to go out more and be a social butterfly, or they might want to purchase their first car. If this is the case, don’t simply give them the cash to do what they want. Discuss with them how they are going to accrue the money they need.
Many entrepreneurial teenagers will think of side hustles to generate cash. Others will apply for a Saturday job, or go for something more permanent like a digital marketing apprenticeship to start their career. When they see their paychecks landing in their bank account, they will be motivated to continue working, saving up their cash for their big ticket items and spending their money wisely. You can, of course, reward them for this commitment, but don’t go and buy them the car they are after as this defeats the purpose of them learning the value of money.
3. Empower Them
If you are planning a holiday this year, why not suggest that they plan it according to your budget. Tell them how much they have to spend and where you want to go and make them organize the excursions, accommodation and flights. This takes some weight off your shoulders and also enables them to see how far money will stretch.
Being a responsible parent is tough at the best of times, and money just seems to complicate things. Follow this guide and begin teaching your kids the value of money.