Schools teach our children an abundance of things. They learn how to count, how to write, how to collaborate as a team and many more important life skills they will need to thrive in the world. However, one area lacking in traditional education is teaching young people about finances.
As a parent, the responsibility to educate your child about money falls to you, and this can be a difficult task to navigate. The good news? There are plenty of small steps you can take to start teaching your child about finances. From assessing your weekly grocery bill to having them manage their own pocket money, read on for some top tips on educating children about money.
Talk about solutions
Teaching your child about the dangers of being financially irresponsible as soon as you start teaching them about money may make them anxious, which could diminish their interest in learning before they’ve even started.
Presenting options and solutions for financial issues can ease your child into the world of money and give them the confidence to tackle their finances responsibly in the future. For example, you could discuss that bad credit loans are often pushed by companies but there are other alternatives, such as lines of credit, that may be more flexible.
Show them how you spend your money
To children, money often seems to be an alien concept and it can be tricky for them to get their head around the way finances work. Showing your child how much everyday items cost can help them see the connection between a price and a product. Encourage them to read price tags in shops or sit down and run through your weekly grocery list so they can get an idea of where your money goes.
Instil good saving habits
Having your child manage their own pocket money is a great stepping stone to getting them ready to handle their own finances later down the line. A visual representation of how savings grow and shrink based on their expenditure will help your child assess their spending habits. A good idea is to give them a clear jar in which to save their coins and let them watch what happens.
Encourage your child to save for something that will take some time for them to be able to afford. Learning to be patient when it comes to saving is a crucial step, and while it may take a while to buy the desired item, this will teach them discipline as well as budgeting skills.
Make it fun
After spending all day at school, your child probably won’t be keen to spend their weekend or evening doing something that feels like homework. Keep the process of learning about money fun and exciting to increase their motivation towards learning about financial matters.