Mother’s Day is this upcoming weekend (Happy Mother’s Day to all our First Scoop reading Moms!), and in thinking about this important holiday and all you’ve taught your children in life up to this point – here are a few significant pointers you can teach them about their future finances.
- Let your kids earn some money. It’s rather difficult to teach your children about money if they don’t physically have any. Though just giving it to them without explaining the value of earning money based on hard work, won’t teach them anything either. Instead, give them some responsibilities around the house (taking out or walking the dog, age appropriate chores, etc.) and provide them with a weekly or bi-weekly allowance so they will know that money needs to be earned through consistent work.
- Teach your kids to save money. If your kids just spend their allowance on whatever they want, whenever they want – this isn’t helping them or teaching them about the importance of savings. Talk to your children about saving for a rainy day, retirement savings, and compound interest. You can even try setting savings goals for your kids and reward them for saving by giving them a little bit extra when they meet the goal.
- Allow your kids to spend some money too. Instead of just buying your children whatever they ask for, teach them the significance of making responsible purchases and to really think about their purchase before buying something. This will show them that they can get an item of their choice, but in order to do so they are also learning about saving, budgeting, and spending money too.
- Show your kids it’s okay to be frugal. One of the most important lessons you can instill in your children is the value of saving their money for things that really matter. Teach them to comparison shop, use coupons whenever possible, and not to buy things for the sake of just buying something.
The best way to teach your children to be financially responsible is to be an example for them. Don’t be afraid to talk to your kids about your own personal money experiences too!
Article Source: CUInsight.com