It’s never too early when it comes to teaching kids about money. There is hardly any room for children to learn about finances at school and so parents need to chip in to raise smart kids. Such kids grow up as financial literates and enjoy great economic future.
Financial education for kids is not just about money. It’s about building great families with self-confident kids. They are families well-versed at financial sustainability, by living within the means. They also have skills to create and manage financial and human capital. Eventually, responsible citizens evolve.
Tips to Teach 2 to 3 Year Kids about Money
Put toys aside for some time. Play with coins with your toddler. Help sort them in stacks, based on the size. Let her drop the coins in your hand bag. Create a play store at home and allow the child to buy a few items by exchanging money. In simple words, create activities around money.
Note: Do supervise toddlers while they play with money to ensure they do not put the coins in the mouth. Avoid choking hazard.
Tips to Teach 4 to 7 Year Kids about Money
Take kids along while shopping. Use this opportunity to teach them the value of money. Help them discriminate between needs and wants. Before heading for shopping, give them your budget. Work on and help them to save maximum after spending. Teach them to use the saved amount for the next time.
Tips to Teach 8 to 10 Year Kids about Money
Help children prepare their budget. Allot some allowance/pocket money or help kids earn. Make deals to pay them when they earn good grades. Assist them plan for expenses, charity and savings. Teach them to appreciate watching the savings grow towards a goal and joy of sharing with others. Learn more budgeting tips for pocket money.
Tips to Teach 10 to 13 Year Kids about Money
The brains of the kids around this age group are impulsive. They are to be taught about credit and debit cards. However, they may not understand the entire concept. Best practice is to practice cash payments instead of cards when your kids are around. Cards could be confusing, while cash payments are more clear and straightforward. Monitor accounts together and discuss about making smart money choices.
Tips for Teenagers
Teenage is the right age to explore and learn more money management skills. Teens good at finance management have bright chances of turning rich by their mid age. Right investments around this age can help them turn millionaires, given the power of compounding. Help your teens learn simple money management tips.
In conclusion, it is every parent’s responsibility to make their kids financially literate. Remember that kids love to imitate eldes rather than following what is said. So, ensure that you too do right things with your money and set an example. For more advice on personal finance, approach fiduciary like ArthaYantra.