Raising Financial Aware Children
As kids, the last thing we wanted to talk about was money. Our focus was on soccer practice and video games! Fortunately for us, our parents found creative ways to help us understand the value of money. So, while mowing the lawn wasn’t fun, earning our allowance was! Here are a few tips to help you raise financially aware children.
- Start money conversations early. Trips to the grocery store, looking for sale items, and calculating the cost per piece of fruit could be a good start.
- Allowances. Make sure that household chores are taken care of first! Slowly increase the amount they receive over time, in addition to the number of chores required.
- Involve your children in family purchases. Whether it’s a new home, car, or kitchen appliance, include them in the process. They can learn about the importance of doing research before making big purchases.
- Explain wants versus needs. When your children tell you what they want to buy, explain to them what else they could buy for that amount. They may not listen to your advice, but at least they’ll start to understand how to value different items.
- Keep track of spending. Have your children use a spreadsheet or notebook to keep track of where their money goes each month.
- Before teenagers head to college, they should have a solid grasp of budgeting to avoid credit card debt. It’s crucial to discuss the importance of paying bills on time, what happens if you don’t pay, and keeping an eye out for unauthorized charges. Consider sending them to college with debit cards instead of credit cards to ensure they stay debt free.
With these simple activities, parents can help create a solid financial foundation for children to become money-conscious adults!