Handling money is a skill that must be taught – and giving your children the knowledge and help to develop good money habits is a life lesson that they will carry with them throughout their adult lives.
Here are some easy ways to teach your kids about money.
Make it fun. Sorting coins into jars and playing games like Monopoly are great ways to help teach kids about money and spending while making it fun.
Use everyday situations as teaching moments. Take your kids with you on trips to the store. Let them see the costs of what you buy and ways you can save money (coupons, unit price, etc.). Point out the different ways to pay (cash, check and debit/credit card).
Understand wants vs. needs. Teach kids the difference between wants and needs. This will help them later on down the road and hopefully teach them how to spend (and save) wisely.
Earn money. Allow your children to earn their own money to spend and save (household chores, allowance, etc.). Older children can work a summer job (babysitting or yard work) to earn money.
Set savings goals. If your child wants to buy an item, the goal amount would be the purchase price. Knowing what they’re saving for will motivate your children to want to save their money.
Put money aside. Make sure your child has a savings account or another method to put away their savings. Spending can often be more tempting if the cash is easy to access.
Teach by example. Let your own actions show your kids how to save money. Make sure they know that you’re saving money as well, whether it’s in your own change jar or a savings account.
Want more tips for teaching your kids good money habits? Download our FREE Money Talks Guide for Parents and Grandparents.
Your turn: What are your tips for helping your kids learn good money skills? Tell us in the comments below.