Financial education for children is a must, yet it´s a subject that´s often overlooked, both in schools and by families. Financial tips for kids are essential, or they are at risk of notu nderstanding how to run their finances as adults. Here are some fantastic financial tips for kids – teach your kids these concepts and help them to grow up to be smart with money …
Table of contents:
- money is limited
- budgeting skills
- saving habit
- everything costs
- work for what you want
- treats are limited
- they can´t have everything
1 Money is Limited
One of the best financial tips for kids to learn is that, as our own parents used to say, money doesn´t grow on trees! It´s best to teach them that your resources are limited, and that most people have to live within a budget. This will help teach them a sensible attitude towards money.
2 Budgeting Skills
How many people know how to draw up a budget? It´s something we´re not taught to do, so it´s a very worthwhile skill to pass on to your kids. It will be of great use to them once they go to college and from the time they start work. So help them to learn about paying essential bills first, and how to budget for holidays, luxuries etc.
Another good financial habit to teach your children is to prioritise. Parents often pay for so many different activities and hobbies these days, which costs a small fortune and can spoil kids. Give them choices instead – do they prefer skating or drama? Do they want to spend their Christmas money on lots of little things, or buy one big expensive toy?
4 Saving Habit
Financial education for children should definitely include the importance of having a savings account. Even though interest rates are not generous these days, it´s good for kids to learn how their money will grow if they invest it in an account. Encourage them to save some of their birthday money, pocket money and earnings from jobs.
5 Everything Costs
While young kids shouldn´t be worrying about the cost of living, it is important that they learn that everything has a price and a value. This will be a very valuable lesson later on in life. This way, they will be aware that it´s important to look after your things and spend your money wisely.
6 Work for What You Want
One of the most essential financial tips for kids is the value of working for what they want. Look at the example of millionaires who tell their kids that they won´t be leaving them a cent – not because they don´t love them, but because they don´t want their kids to take having money for granted and waste their lives.
7 Treats Are Limited
Financial habits are often learned in childhood, so if you teach your kids that they can have whatever they demand, they´ll expect to be indulged as adults. This attitude can mean that they´ll keep coming to you for cash, or that they go crazy with credit cards. Teach them when they´re young that treats are for special occasions, and they´ll be more likely to retain a sensible attitude towards money as adults.
8 They Can´t Have Everything
It´s understandable that parents want their kids to have the best of everything. However, it isn´t affordable in many cases, and it certainly isn´t sensible to let them think that they can have whatever they want. Teaching them that they can´t have everything will help them learn what really matters in life, and think about need rather than want.
Financial education for children is essential – starting them off with good financial habits and a sensible attitude towards money will stand them in good stead in later life. It´s never too early or too late to start, so if your kids think that the Bank of Mom and Dad will always be open, show them the error of their ways! Do you have any financial tips for kids, and is there anything you wish your parents had taught you about money?
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