Teach your kids about money: Tips to raise financially savvy children
As a parent, it's your job to make sure the kiddos are financially savvy! Being money-smart can provide future freedom for them—so start 'em young and get teaching. So here are some tips on how you can help raise little budgeting boffins from an early age!
Instilling economic success in your kids isn't gonna be a one and done thing—but it's 100% worth the effort. From teaching budgeting basics to taking 'em out for that first banking lesson, there are so many ways you can help them understand money better!
And here're three extra easy ones: just some home tips you can use to get their little brains thinking about finances.
Show, don’t just tell
Kids are like little sponges—constantly observing and taking in all your day-to-day habits, including the ones you don't even realise! Show them how to be responsible with money by setting a good example yourself. No yap about fancy buys or waving around big bills when they're present—that's not gonna help 'em learn anything positive on saving those hard earned $$! Let your family know it’s ok (and important!) to talk openly and calmly about finances. It's important to not just manage your funds, but also the way you discuss them around kids. Make sure they know that money is a precious resource—it needs looking after and shouldn't be taken for granted!
Start a secret piggy bank or savings plan
Saving money can be hard for kids to understand, especially the long-term benefits. That's why starting a secret piggy bank or savings plan is a great idea. Whether you have older children paying board or young kids collecting money for household chores, set aside a portion of their money every month. When they've saved enough, surprise them with a lump sum. This will motivate them to save money for bigger purchases. Plus, they’ll learn early on that success comes through discipline; an invaluable lesson for high-ticket purchases down the track.
Protect their assets
We all want to give our kids the best protection we can, and a good place to start is with having some important chats about personal insurance. Yeah sure, it's not as fun talking money stuff as say playing hide-and-seek or catching tadpoles in streams! But you'll be equipping your offspring with knowledge on how they can protect themselves if something unexpected happens. You don't need to get too nitty gritty here; simply outlining different types of insurance so that your kids are aware plus why these might come in handy later down the track. Plus, you can create a safe space where your children feel comfortable talking about their concerns and questions.
It's never too early to have the money talk with your kids—after all, insurance isn't something that you want them finding out about for the first time when they're responsible for their own assets. By giving them background on these topics now, it'll help equip 'em so if (and more likely when) they come across insurance decisions in future life stages, they can make informed ones!
Teaching your kids about money takes time, patience and consistency. With these tips, you'll help them learn the true meaning of financial responsibility and prepare them for a successful financial future.