Teaching Kids About Money-A Simple Guide- Why Teaching Kids about Money Matters?
There are many benefits of teaching kids about money. Educating them early in their life will have many benefits in the future. If they become disciplined early in their ability to responsibly save, spend and invest their money the opportunity is endless. Why, because they will be wise enough to know what, when, and how to use their money for the best benefits. This is why we have compiled this Teaching Kids About Money-A Simple Guide.
Teaching children about money gives them a chance to learn how to make good financial decisions in their lifetime.
For the most part, people are not born with an understanding of how money works or what it is worth. They have to learn this information when they are young if they want any hope of understanding why it is important for long-term planning purposes.
As a child, it is important to absorb the idea of money. From an early age, a child needs to know that they have to work for their money and it has real value. It also helps them understand that there are different types of currency and how to handle them responsibly.
Money is not just something that adults talk about, kids should too! It teaches children that earning money can be a lot of hard work but it’s worth the effort because money is what fuels many aspects of our lives.
How to Teach Kids About Money in These Easy Steps
Teaching kids about the world of finance can be difficult for parents. Children are usually drawn to what is shiny and new. They don’t always understand the consequences of their actions, especially when it comes to money. Here are simple steps that parents can take in order to teach their children about finances in a way that they will remember for years to come.
1) Talk About Money: This step is so important because talking about money helps children know how important it is in day-to-day life. Parents should talk about money when they give their children responsibilities around the house, when they spend money themselves, or when they see ads on TV or social media.
2) Attend A Financial Seminar: These seminars are great because there are trained professionals who speak directly to kids and help them. You can find these within your own location online.
A lot of people have a bad perception of money. They think that it is complicated and that you can never make enough. When you are a kid, this may not be true.
3) Money Management– Free Online Financial Education- We all know it is healthy to read and learn what the masters of finance have to say. This is not just for the kids, but it could help them to understand the big picture if you are learning with them. It is wise to find any resources to help them put it all into perspective.
4) Listen to the great mastermind of finance, Dave Ramsey. He has many steps that can be included in helping children to learn more about the importance of understanding money. Dave also states to teach the kids how to accumulate their savings in a glass jar. *They can see it rise to the top and over… It includes guidance for the adults as well, which is often needed.
5) Being an Example- Make sure you as the parents are an example of what you are trying to teach your children. This means that you may have to watch your own steps by discovering new ways to save, prepare for the future, and become a great example.
6) Money is Earned- It is wise and important to help the kids know that money is usually always obtained by working. Most parents work to earn their paychecks, and they have used discipline to get to where they are financially.
Meaning, should they have chores that help earn them more $$$ for their allowance? They can help keep their room neat and clean by picking up their clothes and putting them in the basket to be washed. Dusting their bedside table and keeping the junk in its proper place. Taking their garbage to the proper place.
7) Teach them that paying cash is a way to stay out of debt. If they want something that is overly expensive teach them how to save for those things. When you have less debt, you have more wealth.
8) Explain That Homecooked Meals are Healthy – Very often we adults want the quick fix to a meal just like the children. However, it is important and less costly to prepare homecooked meals to have a two-way advantage. Cost less and is healthier.
9) Teaching children that it is important to remember that everyone’s life is not the same early on. The kids next door may have more gadgets, more TV games, and more expensive items, but they may not have any money saved in that glass jar. This is so important because you can find adults who want to live like their neighbors. It is more important to save than to have a bucket load of things you rarely use.
10) Parents who take the time to teach their children to respect money, will not be disappointed in their financial behaviors when they are grown.
Some People Are More Prone To Have the Money Mindset
Some children are savers from the time they become old enough to save their toys and keep them in a safe place. I know one who was.
Our family was friends with a banker’s mom, and our kids played together. Bob saved his toys and was careful he did not tear or break them. He saved his lunch money and took a sandwich for his lunch after starting school. He did not have to do this, and his mother did not suggest he do it.
He would put those dollars in his sock that included his allowance, birthday dollars, Christmas money, and anything given to him. He was a saver from the beginning. When he finished school, he has a sizeable amount of $$$s saved. Of course, when it accumulated, his mom would put it in a bank account for him.
He is now a very successful business owner with successful children.
My son, bless his sweet gentle heart, was just the opposite. Where did I go wrong, shall we smile?
EndNote for How To Teach Kids About Money-A Simple Guide
Teaching Kids About Money-A Simple Guide is only one of many resources to help teach children the importance of managing money. As most people who have acquired money will tell you, it is not what you make, it is what you save or what you do not spend. If children are taught this early on, it can stick with them all their life.
– What is money? Per Investopedia –
- Money is a medium of exchange; it allows people to obtain what they need to live.
– Where does the money come from?
- Money that people obtain actually comes from hard work and management.
The conclusion of this is that teaching kids about money is an essential life skill. When they are allowed to explore, learn, and make mistakes in a safe environment with their parents present to provide guidance, they will learn how to make good decisions with money.
We hope we have provided some good information on how to teach children about money. The bottom line here is that is important for parents to talk with their children that money isn’t normally a gift. It is something that people earn from education, learning, implementing what they have learned, and working hard to make their life better.
In other words, money does not grow on trees.
