The way your child handles money will affect their future. You want your kids to get a good education, to start saving for the future and to build financial security, right? Yet if you don’t teach them how to manage their money, it’s like sending them out to sea without a map.
Topics like budgeting, money management and credit can cause a boatload of problems for your kids as they get older if they don’t have a solid education. It makes no sense to just expect them to know how to manage money, or hope they will learn all they need to know in school. You want your kids to study hard and do well in life,
Parents seem more than willing to talk to their kids about what foods to eat, how long they should stay on the computer, bullying or even the birds and bees. Yet, when it comes to money, so often this subject falls to the wayside. It is never too early to start educating your kids about finances.
Here are some tips for parents on how to help your child become a good money manager:
- Be an example. If finances aren’t your strong suit, learn how to manage your finances and involve your child. They can learn by watching you.
- Separate love from money. Showering your child with money or gifts sends the wrong message. Instead of buying them more stuff, show your child how much you love them by spending time with them.
- Communicate. Talk to your child honestly about the basics of money management and the difference between wants and needs.
- Assist in choices. Research options with your child and help them weigh the pros and cons of a financial decision.
- Assist in visual cues. Show your child a grocery receipt so they can visualize the cost of food. Show them how purchasing a more expensive item can affect your buying power.
Teach your child everything you know about money management by the time they graduate from high school and go into the real world. They will thank you for it (and so will your wallet!). The stronger the communication with a parent about money, the better prepared they will be when handling their financial decisions in the future.
For more helpful tips and information on financial education for kids, check out our blog.
