As a parent, you would only wish the best for your kids. However, the definition of this “best” could be pretty blurry.
Apart from buying the best clothes, latest toys, and cool gadgets, there’s one more thing that you should focus on – money management.
Several studies suggest that millennials are the worst hit by financial struggles as compared to their ancestors. And one of the leading causes for this trouble is that they were never educated about finances in their childhood.
But, you can change that. At least, make it better for your kids.
Wondering how to do it?
Worry not. We are here to help you with the same.
Start with the basics
It is pretty evident that the earlier you start with your kids’ financial education, the better.
Not to mention that they would start to value money for its practical value over other things.
Now, once your child is old enough to know what money is, you can start teaching them how to use it. It would help if you also taught them about the hard work that earned all that money.
Introducing your kids to the basics at an early stage would mean that they would be more familiar with its management at the later stages in their lives.
Teach them how to save
Once your child is familiar with what money is and how to use it, the next thing you can do is teach them about saving it.
Please note here that saving does not mean telling them to keep their money in piggy banks. Of course, it is one of the many ways to save money.
But, it’s certainly not the only one.
So, you can teach them how to use a bank account, invest money in stocks, or teach them to use a debit card for teens to save money.
With debit cards, they’ll be better able to understand what budgeting means and how they can manage and save while making the necessary expenses.
Emphasize on commissions and not allowance
The best thing that you can do is teach your kids how to earn money.
No. We don’t mean you should encourage them to take up a day job to earn money,
But, instead, you can offer them commissions for completing their daily chores.
For example, you can offer them a commission for completing their homework. Or you can pay them to clean and organize their rooms.
Encouraging them to take care of their jobs while also paying them would instill a sense of responsibility. And they should be better able to value the money that they earn. Once they’re older, you could let them know that they could hire a financial planner in auckland or wherever they’re based to provide them with a financial plan that works well for their future.
Help them make wise spending decisions
Lastly, you can teach them about how to spend the money they earn.
Since they are kids, they are more likely to make impulsive expenses. And not to mention, it could sometimes hurt them financially in the long run.
So, what you can do is teach them to differentiate between necessary and unnecessary expenses.
For example, you can tell them that buying a new play station is not a necessity. On the other hand, you can say that purchasing new clothes is still necessary and worth the money spent.
The Keynote
In a nutshell, you can teach good money management habits to your kids with simple tricks. All you need to do is teach them the importance and the hard work of earning money.
And rest assured, they’ll be more responsible with their finances in their later life.
If you want to learn more, read this guide that covers a variety of financial topics that teenagers need to understand to get the most out of life.