Teaching your children about money and saving can form healthy financial habits for their future and benefit their overall personal development.
Although, parents often tend to delay this topic until their kids grow bigger and usually start having financial conversations when it’s too late. So how to avoid this and teach your children about money?
If presented properly, even children at an early age are capable of understanding the concept of money. However, for them to learn new financial habits, you have to turn your imagination on and offer interesting finance-related activities. There is nothing more enjoyable for a child (and a parent to observe) than learning through games. Your children do not need to hear another boring lesson about financial responsibility. On the contrary – they need to experience it in a playful way themselves. Various imaginary situation games, or board games like Monopoly (for older kids) are perfect for spending a gloomy afternoon, allowing your kids to explore the financial world and learn valuable lessons in a fun way.
As adults, we are more or less used to planning our expenses, budgeting and reaching our short-term or long-term goals. Although, we shouldn’t expect the same financial planning skills from our children, who might still see money as a renewable resource.
Visualizing your goals helps to achieve them easier – it is beneficial for both adults and kids. To teach your kids financial planning, help them create a list of all the things they want. For the smallest ones, drawing these items can be even more effective. Then help them calculate the costs and plan how long saving a particular amount of money will take. Taking this a step further, you could even suggest some activities, such as helping around the house, that could help them earn additional money to reach their goals more quickly.
Kids are our little observers, who watch everything we do and learn directly from it. Despite our most significant efforts to teach them financial skills, all of it will be useless, if they see us doing poorly in this field. We have to stand behind our words and show them a good example ourselves. If they see you successfully achieving your financial goals, they will be instantly motivated to reach their own. And vice versa – by seeing you struggle to make ends meet, they will feel helpless and lost in the financial world.
So, to sum up, it’s always important to find the best way to inspire your child to learn something – and what could be better than a game?
Make the learning process fun, and the results won’t disappoint you. Also, make the goal of saving clearly understandable for the child and, definitely, be a clear representation of what you teach to your kids.
And last, but not least, do not forget to congratulate them with their new achievements!