Is raising financially savvy children quite difficult for you? Are you confused with ways or things that can help you to teach the kids about the value of money? Money management for kids involves teaching them a variety of aspects, from budgeting to planning and even earnings and savings.
Teaching toddlers about money helps the children to grasp the importance of understanding the value of money. That also teaches them about fiscal responsibility. Teaching money management to kids helps to prepare them for their life in the future. Money management is a vital life skill and it is never too early to teach kids about budgeting and finances.
Most of the parents wonder how they can teach kids about money. In this article, we will focus on the various ways by which one can teach their toddlers about money.
Ways For Money Management For Kids:
1. Use a Clear Jar to Save:
Start teaching money management to kids with a piggy bank is a great idea. But the piggy bank should be a clear jar that helps your kids to save as it can be visually seen that the money is growing. You can use a cute piggy bank or a favorite Hello Kitty wallet etc., whatever your kids like. You just need to designate a place where they can keep their money to save. Some experts suggest that giving your kids three different receptacles to put her money – one for saving, one for spending, and one for donating to a charity. This will help you to decide together how to divide up her weekly allowance among the three jars. This is an important way to teach kids about money.
2. Set a Good Example:
The study by the University of Cambridge found that money habits in children (R) are formed by the time when they’re 7 years old. It is always believed that the little eyes are watching you about the money management you do. If you’re slapping down plastic every time when you go out to dinner or the grocery store, the kids will eventually notice your each and others activity. Or if you and your partners are arguing each other about the issue related to money, they’ll observe that too. So, set a healthy and good example for kids which will more likely inspire money management in kids. As with so many things, what you do matters is never lie about purchases to your spouse. And always put purchases into a certain context which emphasizing on the things that are not what make people or others happy.
3. Explain Credit Cards and ATM Cards:
Kids often have a misconception about money which is why it is quite important for you to teach the toddlers about money. Even older toddlers may not fully understand what it means to use the credit. It is a very important aspect to teach the danger of credits cards and ATM cards. If you haven’t taught your kids why these cards are a bad idea, they’ll become yet another credit card victim and experience the dangerous effects of using these cards. Remember, it’s up to you to determine the right time you’ll teach them about money management.
4. Avoid Impulsive Buys:
Teaching kids about money can be started as a part of regular household routines for kids such as going to the grocery store, handing the day to day expenditure. Convey to your child about what your budget is and make a game of buying what you need under that setup amount. Clip coupons, and let your kids help you to find items on sale. Kids can take a calculator and which will help them to keep track of your purchases and figure out how much you have saved at the end. Instead of giving in, let your kids know that they can use their hard-earned commission to pay for it. This will help them to be able to make that money decision with a level head in the future.
5. Play Games That Have to do With Teaching Kids About Money:
Nothing works great as paying games can work to teach kids about money. This is the simplest and easiest way where you do not have to speak a lot in giving a brief idea or concept of how important is money in life. Board games such as Monopoly, crash crunch junior, money bags coin value game, etc. can be some good options. can be a great fun way for kids to learn about money management. So, gather your whole family around your favorite game and let your toddler unleash their inner mogul about money.
6. Give Some Allowances:
Don’t just give your kids money for breathing. Pay them some commissions or allowances which is based on chores that they do around the house like taking out the trash, cleaning their room, or mowing the grass and so on. This concept helps your kids to understand that money is earned (R) with a lot of hard work and it’s not just given to them for fun and waste. The toddlers are able to do more chores in order to help them around the house. Whether or not you tie chores to an allowance or commission, it’s a good idea to get your kids into the habit of teaching money management to kids.
7. Give Bank Responsibility:
The best way to teach kids about money is by giving them bank responsibility. This is what my parents did with me to teach the value of money management. Trust me, I really thank my parents for it as today I am quite capable enough in dealing with the financial matters in my life. Simply start with taking your child to the bank and open up an account. Explain to him that his money will grow when he leaves it in the bank. By the time your kids are a teenager, you should be able to set them up with a simple bank account. This takes money management for kids to the next level, and will hopefully prepare your kids for managing a much heftier account later in their life.
8. Teach Generosity:
No lesson about money is complete without some information sharing about charity. Help your kids put money in a perspective way by showing them that there are many other things than spending money just blindly such as love of family and our fellow mankind which are regarded invaluable.
9. Help them to Teach Money Management:
Knowing how to handle money (R) can make a greater difference in how comfortable your child’s life is. If your child never learns to save, he may end up struggling with debt his whole life. There are money managing tips for kids that can be taught to very young children, but if you’ve missed that window or phase, it’s never too late to start. The child should know the value of saving and the consequences of wasteful spending habits as soon as possible. Teach them the importance of budgeting early on in life. It is vital to indoctrinate the concept of contentment and smart ways of spending money.
10. Teach Them Contentment:
Your kids must probably spend a good chunk of their time staring at a screen as they scroll through social media. Every second the kids are online, they’re seeing the highlight reel of their friends, family and even total strangers in social media platform. It’s the quickest way to bring on the comparison trap. The power of contentment starts in the heart. Let your kids know that their Subaru is still running well enough to get them from one point to another.
These above ways to teach kids about money will definitively help you in giving proper guidance for money management techniques. Try this out and that will help you in teaching toddlers about money.
