Even though financial skills and the ability to manage a budget are paramount in our day to day lives, most parents fail to properly educate their children on their matter. But since financial abilities aren’t something taught in school, kids have nowhere else to learn from.
Following, we would like to present you with a list we have compiled of the top 5 things your kids should know about money. If you want to ensure that your children will have everything they need in order to make wise decisions about their finances once they reach adulthood, check the countdown we have prepared for you. Let’s take a look.
No. 5: Cultivate their patience
Most adults make bad financial decisions that end up costing them dearly simply because they’re too reckless and lack the necessary patience. Often times, such a behavior is instilled early on in our lives and so it is your responsibility as a parent to ensure this doesn’t happen to your child as well. Teach them that waiting is something good; for example, when you kid is throwing a fit because he or she wants a certain toy or candy that very instant, keep your cool and tell them how people who have patience are handsomely rewarded.
No. 4: Make them a part of your family’s financial decisions
Once you children have grown up a little bit, for example since the moment they start attending school, you can include them in some of your household’s most important financial decisions. Take them with you when you go grocery shopping and show them how using coupons or taking advantage of special offers can help you save a couple of bucks. When they grow a bit older, you can talk to them about more significant financial expenses, such as college or buying a car.
No. 3: Financial responsibility
Unfortunately, many parents nowadays are enablers. They’ll buy their children every little thing their hearts desires, without any restrictions. But this kind of behavior will not only spoil your kids, but it will also make the financially irresponsible. Instead of giving in every time your kid asks for something, approach the matter in a different way: tell them they can only pick one toy or video game per month and that they’ll only get it if they keep their grades up. In this way, your children will learn that they shouldn’t take anything for granted.
No. 2: You have to earn your money
While you shouldn’t make your children work, you still have to show them that in order to get money, you must first make an effort. For example, you can set up a plan through which they can choose a series of extra chores to do around the house, others than the ones they are normally required to do, for which they can get a small increase on their allowance.
No. 1: Money may not bring happiness, but not having any makes you struggle
One of the most important things you have to show your children is how financially poor decisions and reckless spending can affect you in life. Try to involve your children as early as possible in a variety of volunteering projects designed to help the less fortunate. This will show them how important a role money plays in our lives and it will also teach them throwing it off the window will lead you nowhere. In addition, you’ll also show them that helping others can often represent an invaluable reward.
