Money Management 101 for Kids!
Start early and teach your kids the fundamental of money saving. There is a great quality that children have and that is being observant in everything you do. That is how they learn to do many things, such as, unlocking your smartphone or learning how to say Heritage Education Funds. Kids have this great ability to do many things while they are young. Why not teach children how to manage money and save!
Here are some steps on how to teach your children money management according to Parent Further.
Money Management 101 for Kids
Create a Budget
Develop a budget plan in the household. Teach your children the value of sticking to your budget and not overspending on things that was not a part of the budget plan. This will teach your kids how to make smart financial decision that will be carried throughout their years.
Talk you your kids about spending. This is a very important subject when it comes to saving money. Teach them about price comparison and coupons before you make the ‘moment of truth’ purchase. Get your kids involved with the decision, so they can learn how to determine the value of spending or saving.
Spend, Save, Share Jars
This is a great way for children to see their money growing physically. You can give your children a type of allowance and teach them to divide their money into the three jars. For example, a toonie can go to the spend jar, $4 can go to the saving jar, and $4 can go to the charity jar, which equals to the $10 you gave them for allowance. Decide on the percentage that will go to each jar. This will set a great example of money managing.
Save For A Bigger Toy
When your son or daughter goes to the toy store with their money and want to purchase a toy, you can encourage your children to save their money by telling them to save it to purchase a bigger toy when they are older. It will encourage them to save now for later.
Practice What You Preach
Make sure to also carry a great example of money management to your kids. Children do learn from their parents. Practice and preach the concept of good financial habits to send a clear message to your kids.
There are many other ways to teach your children about money, such as games, activities, and books. For this education month, teach your kids the fundamentals of money management.
Happy Education Month!