Financial smarts don’t happen naturally. Your children have to learn how to make the best decisions. They also need to learn the basics, such as balancing a checkbook and writing a check.
They also need to learn about earning money so they have a better understanding of where the money comes from and how hard people have to work for it. Let’s take a closer look at important lessons to teach kids about money.
Important Lessons to Teach Kids About Money
It’s never too early to start talking to your kids about saving money. You can easily have conversations about putting money away and give them examples on how to make it happen.
First things first. Children need to know where the money comes from. This is a good time to start giving your children an allowance. If your children already receive an allowance, consider allowing them to earn more money by doing small jobs around the house. Give your children jobs that are based on how hard they are. For example, folding the laundry may pay $1 and doing the dishes may pay two-dollars.
Having a real conversation with them is important about money truths. Talk to them about how allowance works and give them the chance to earn their own allowance.
If they’re old enough to be looking for a job, start talking to them about earning a paycheck and how taxes work as well. Take this as a time to teach them about how earning money truly works in the real world.
Getting the Most for Your Money
Another important thing your children need to learn is to get the most from their money. This is something you can easily teach when your children are buying toys or candy. Show them how they can get different kinds of toys or candy and end up getting more for the same money.
Since we live in a world of technology, show them that shopping around is a great way to find deals and save money. They can easily look at what they’re wanting to buy at several different locations online to save big bucks.
Waiting to Buy
Something everyone should learn early in life is waiting to buy something. When your children stumble across something they just have to have, explain that if they still want it a week from now, they can buy it. This helps weed out the items they just think they want. Your children will forget about most items and only buy the items they really do love.
Patience can really be a great way to save money. If they have something that they want to buy and it’s a lot of money, have them wait for 2 weeks and see how they feel. If they still want it, they should move forward in looking at buying it.
But if they’re no longer interested in it after those 2 weeks, that taught them an important lesson on impulse buying.
Writing a Check
It’s sad, but most young adults have no idea how to write a check. While checks aren’t used as often as they used to be, everyone needs to know how to do this. This is something you can easily teach your children.
There’s also an important lesson when it comes to writing checks as it holds you accountable to actually write out and hand over that check. There is something in the brain that actually registered that as something that will make it more painful to spend money rather than just swiping a card.
Balancing a Checkbook
Another thing that many young adults have no idea how to do is balance a checkbook. Again, this is something you can easily teach your children.
This is important for them to be able to balance their income versus their expenses and do it in a way that they don’t overdraw or run out of money.
Even though some people don’t even use a checkbook anymore, the process of knowing how to track the balances are still the same.
You don’t have to teach your children how to be extreme couponers, but it really does pay to teach your children about using coupons. A great way to do this is to only allow them to get sugary cereals if they can find a coupon to use. You can take things one step further by having them match that coupon to a sale.
There is nothing wrong with using coupons! There are so many ways that you can use coupons to save a lot of money and then save that money to use on something else! Why spend more when you don’t have to?
Last, but not least, your children need to understand how to compare prices. Show your children how to use a calculator to find out the price per ounce. You also want to show children how to compare prices from different stores and why that’s important.
There are so many things your children need to learn about money. It might be shopping for the best prices or using coupons. Try teaching your children something new each week and use methods to make learning fun.
Resources to Teach Kids About Money
Not sure where to start? Read one of these amazing books about teaching your kids personal finance so that they learn from a young age not be mishandle it and to make smart decisions once they start earning their own money.
Books about money are a great way for the kids to be excited about sitting down and reading at their own pace. These books are great for sitting down together and studying more about saving money. It’s always a great idea to be money smart!
Smart Money Smart Kids: Raising the Next Generation to Win with MoneyRich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!Make Your Kid A Money Genius (Even If You’re Not): A Parents’ Guide for Kids 3 to 23All About Money – Economics – Business – Ages 10+: The Thinking Tree – Do-It-Yourself Homeschooling Curriculum (All about Money & How to Make Money … Money, Economics, Business – Research – GRE)Finance 101 for Kids: Money Lessons Children Cannot Afford to MissThe Everything Kids’ Money Book: Earn it, save it, and watch it grow!
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More Teaching Kids About Money
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15 Ways to Teach Kids About Money by Ramsey Solutions
How to Teach Kids About Money at Every Age by Money Geek