4 Important Money Lessons To Teach Your Kids

13th February 2018
Print Friendly, PDF & Email

Teaching children about money is very important.

Most people reach their adulthood without any financial knowledge.

You can’t really blame them no one taught them about money when they were in school.

 

Some parent they don’t know how to teach their children about money and again you can’t blame the parents as their parent never taught them about money.

If you read the book The Richest Man In Babylon By George S Clason you will know that to build a successful generation, positive money lessons should be taught to children.

Instead of teaching positive things about money most parents will always talk to kids about money in a negative way, instilling fear in children’s minds about money.

Growing up I was never taught about money management at school neither was I taught about money at home.

The only money lessons I got were self-taught from the ones that I saw my parents practised.

Although my parents were good savers and spenders I can recall hearing phrases like these in our household as a child.

Money is hard to find.

We will never have enough money to buy that.

Money does not grow on trees.

Saying these such statements and letting children hear these will make children feel that money is a big something that is difficult to get hold off and even if you get hold of money, it will never be enough.

Parents should teach their kids positive things about money and stay away from the negative statements.

It’s vital to teach kids about money as early as they start to understand the use of money.

Here are 4 simple money lessons to teach to children about money.

1.  Managing Income

Kids should be taught about managing their income that is budgeting their own money.

If you give them money for doing chores around the house or they receive money for birthdays and Christmas teach them that they should not spend all the money at once.

Encourage them to find new sources of income.

You can ask them to wash your car every 2 weeks for a certain allowance.

This will help them to understand that having many sources of income is better that one.

Each time they receive any kind of money it’s important to show them how they can budget their income.

You could help them to divide their money into these three categories Spending, Saving, Giving.

2. Spending Money

Most young kids when they got hold of money they simply what to spend it on one or two things which are mostly toys and sweets.

But as they get older and become teenagers they learn to save money, their needs change instead of buying sweets or toys they might want to buy handbags or trainers that are trending.

It important to let kids make mistakes when it comes to spending their money and you should only correct them when the need arises.

If they want to spend their money on a poor quality item let them do that it may be painful to watch but in the end, the will learn to go for quality items.

3. Saving Money

Saving money is another money lesson that you should teach your kids.

Explain to them why it’s important to save money.

When they are saving money they should have a goal in mind.

Ask them what are they saving for and what would they want to buy with the money they save?

You could start with helping them to choose a piggy bank so that they get the concept of saving money.

Piggy banks offer a great way of encouraging kids to save money especially when they are still young.

When they are a bit older you can open a saving account for them to use.

4. Giving

The concept of giving should be taught to kids as they grow, some kids are natural givers whereas some like to keep what is theirs to themselves.

But giving can be taught as parents set an example for your kids so they learn from you.

Giving makes the giver and the receiver happy.

One way I encourage my kids to give is at the end of the year when they open their piggy banks I ask them to donate a certain amount from their savings and buy foodstuffs for the food banks.

They enjoy going to the supermarket, getting their shopping baskets, picking and scanning items into their baskets and paying for the items.

I usually add a few more things and we drive to our local food bank centre and we hand out our donations.

The food items are given to the homeless and people in need of emergency food in times of crisis.

This is now a tradition such that my kids are so looking forward to this trip to the food bank as they have understood the concept of giving joyously.

They are many other ways to encourage kids to give to others all you have to do as a parent is to encourage them.

You Might Also Like

  5 Low Cost Ways to Have Fun With Your Grandkids
  7 Best Places To Buy Or Sell Used Kids Clothing
  20 Time Management Tips For Busy Parents
  5 Clever Ways To Organize Kids Toys
  How To Get Your Fussy Eater Child To Eat More
FREE Weekly To Do List Printable
Free gift for you, just fill in your email address to get your Weekly To Do List Printable and updates on our new articles.
 
  Save Save Save