7 Important Money Lessons to Teach Your Kids : Kids are always looking for new ways to have fun. They create endless imaginary worlds with their toys and cruise around on their bikes while they explore the world. What they interact with inspires them to learn, which is why kids become curious about money at an early age.
They watch their parents spend money on things they love, like chocolate milk or mac and cheese. It makes them wonder why money is so important and how they can use it to get the next big toy on their wish list.
Start healthy financial habits by reading about these seven crucial money lessons to teach your kids. These lessons cover everything kids need to understand, and how to introduce them to money so they know how to handle it later on.
Money Doesn’t Grow on Trees
When your paycheck lands in your bank account, your kids don’t see it. They also don’t understand how hard you work at your job to earn that money. All they see is money magically appearing from your wallet or purse when it’s time to buy something.
Make sure to explain that money doesn’t grow on trees. You get paid when you work hard and earn your paycheck. A great way to put this lesson into action is to start an allowance. After your kids complete their work for the week, they’ll receive what they’ve earned and value money differently.
Money Has Different Values
After they understand that money has value and that’s why you can buy stuff with it, kids should learn about how each coin and bill are different. Use toy money to operate a fake store in your living room, where they buy toys or play an educational game to make learning about money more fun.
Saving Is Important
If you spend all your money, you won’t have enough left over for your future. Show your kids that saving is essential by painting piggy banks with them or creating savings goals that take time to get them what they want.
Give When You Can
Kids have a limited understanding of how the world works, so introduce them to the idea of giving to charities. They’ll learn how some people struggle more than others and feel the joy that comes from helping those in need. If they start young, they’ll continue giving later on.
Budget First, Spend Later
Older kids in middle or high school should learn how to budget before they get their first job. One way to do this is to explain needs versus wants and teach your kids how to prepare for both with the responsibilities they have now.
Credit Isn’t Free
Teenagers might love the idea of a credit card because of the instant gratification, but that’s one reason so many young people end up in debt. Explain how credit isn’t free by practicing tiny loans with interest at home before they can sign up for a card.
Money Isn’t Everything
It’s easy to focus on earning, saving and spending money, so remind your kids that money isn’t everything. It’s a tool to make life better, but it shouldn’t be their primary focus.
Start While They’re Young
Think about how your kids enjoy learning. Are they visual or interactive learners? Craft lessons and make them fun, so your family loves the activities and takes the lessons to heart.
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