Tips To Help Teach Your Children Money Skills
Teaching children safety and good manners comes naturally to parents but teaching them money skills can be difficult. It is important that children are taught the value of money from a young age as they are then more likely to manage their own finances better when they are older.
It can be easy for children to ask for the latest consoles and gadgets without really understanding the true value of things. Start teaching children these skills as soon as they can count and over time they will gain a better understanding.
Listed below are some simple tips on how to improve children’s money skills.
- Buy a piggy bank and set a savings goal. Discuss what can be bought once that goal is reached, whether it is a toy or money towards a day out.
- Play ‘shops’ at home. This will develop their understanding of how much things cost and what can be bought for ‘x’ amount.
- Take your children shopping with a list and only buy what’s on it rather than giving into ‘I wants’.
- Reward help around the house and good behaviour with small amounts of money. This can really help to give children the motivation and understanding that working hard earns you money.
- Set up a savings account for your children, to show how their savings can add up over time. Savings accounts generate extra money through interest too, which for older children can be explained in a way they understand.
- Encourage older children to go out and get a small job such as a paper round, car washing or leaflet drops. These can be done from the age of 13.
- Let children take responsibility for small amounts of money that they have earned and let them make their own mistakes. This will help them realise that money is worked hard for yet can be spent in a flash.
- Make sure that children know it is okay to spend the money they have saved but reinforce the idea that it must be saved again.
- Remember it is okay to say no! Children need to learn that they won’t always get what they want in life and will be told no, whether it be by banks or employers.
- Lastly children are greatly influenced by their parents so make sure that you are listening to your own advice!!