One of the most important things you can teach your child is the financial skills they will need to navigate them through life. Money might not be the most important thing in your life, but if you do not have it, it can make living very difficult.
Schools do not teach money skills, you have to. It might be that you were not taught it when young, also, but, you learned through trial and error. No need for your child to do the trial and error, too. When children are small they like to save in a piggy bank, money box, glass jar, etc. They can keep on doing that, using the idea behind the saving, and apply it to their older years, naturally in more adult ways.
Financial Lessons that you can learn your Child:
- You might have to wait before buying something you want; is a very difficult concept to grasp. Even for older people. If kids can learn this ability, saving to buy something you want, it can also predict how successful they will be as grown-ups.
- Set up three glass jars, labelled, “Saving,” “Sharing,” and “Spending”; when your child is given money, for birthdays, doing chores, or as pocket money, help them to divide their earnings, equally, between the jars. The saving jar should be kept for the expensive items they want to buy, the sharing jar can be used to help a good cause or helping a friend in need, and the spending one should then be used for buying smaller things, like a candy bar or small plaything.
- Learn your child to set goals; for instance, when they want to buy a bigger toy that is more expensive. For starters help them to begin with a not too expensive goal. You can also help them reaching that goal through ideas to help them create opportunities to have something more to save.
As a parent, you will have the greatest influence on your child’s behaviour towards their finances. The money ball is now in your hands to help raise a generation with better financial habits and the knowledge to keep those habits through their lifetime.