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Teaching kids about money

Published: 
Sunday, January 7, 2018
Beyond Payday

We love them dearly and it always seems as if they grow up so fast.

Schools teach our children a range of wonderful subjects but sadly, they never teach them how to manage money.

In fact, many of us probably look back on our own childhood years and wish we’d been taught a lesson or two about personal financial management.

Here are a few tips we can share with our kids to help them manage their money as they grow older.

Set examples

Our children are like sponges and in many respects what they see us do, they will often mimic If for example they see us paying with credit cards everywhere we go, they will notice.

Also if they see their parents haggle over money at the end of every month they will also discern subtle cues about the power and influence of money.

If however we set a healthy example for them as parents with how we manage, save and even invest our own money, they’ll be much more likely to follow it when they get older.

Remember from our example they will learn.

Show them that stuff costs money

Teaching our kids about money involves more than just showing them price tags. We must show them how money is transacted and goods and services are exchanged for money. For example, having them grab a few dollars out of a savings jar, taking it to a store, and physically paying the cashier for an item can do more for them than a five minute lecture from their parents. Experiencing the real-world exchange of money can do wonders for their understanding of its value.

Connect work & rewards

We should never just give our kids money for simply existing and being good.

Inculcating in them the work-reward relationship will help them understand that money is earned, not simply given.

So for example, paying them for chores they do around the house will give them an appreciation for the virtue that hard work quite literally pays off.

Connecting for our children that earning money comes from real effort is vital.

Develop a giving spirit

While it’s important to teach our kids about earning, and saving money, it’s equally important to stress the importance of giving. Having them pick some charitable cause, or even someone who may need a little help to give to will show them how valuable what they’ve earned is not just to them, but to society at large. Eventually they’ll notice how having a giving spirit doesn’t just affect the people they give to, but affects the giver as well.

Set them up for life

The road to having our kids make sound financial choices is a long and winding one, but this is a good place to start. The more conscious we are about how what we do affects them and the power we have to guide them along the right path, the better prepared they will be to live life beyond payday.

ANDRE WORRELL

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