As a parent, it’s your job to teach your child the necessary skills they need to live independently as adults. While they learn certain skills at school, such as reading, writing, and mathematics skills, there are other skills that they must learn from you. One of the vital things you can teach your child that they’ll need as an adult is money management skills. If you aren’t sure where to begin, use these tips as a guideline.
Make it Fun
This is true, especially when children are younger. If you can make learning about money into a fun activity, they’ll be more apt to enjoy it and it will be more likely to stick in their head. Whether you make saving into a game by getting them a fun piggy bank for them to put their money away or let them help you do the weekly shopping, if you can make money management seem less intimidating, you should have more success in turning them into good savers.
Team About Budgeting
From an early age, children should learn the importance of budgeting their money. There are several ways you can accomplish this. Perhaps you’ll give them an allowance and make them pay you rent, or maybe instead you’ll share your household budget with them so they can see how money comes into and goes out of your household. Teaching them that money isn’t unlimited and that you must be careful with your expenses can help them out later in life when they’re managing their own finances.
Let Them Fail
As children get older, they should have some autonomy with their money. One of the best ways to learn a lesson is to learn from your mistakes, so if your child a purchase that they quickly have buyer’s remorse over or misplace their money, don’t bail them out. Instead, let them learn that money shouldn’t be mishandled so that next time, they’re more careful with it.
When it comes to teaching money habitsto your children, sometimes simply being a good financial role model can give them the tools they need to succeed as adults. Children tend to watch what their parents do and model their behavior, so if they see you ringing up thousands of dollars in credit card debt on expensive clothes and purses, they may be inclined to do the same thing. Take your spending habits into careful considerations around your children and model good financial behavior.
Remember, parenting a child into becoming a responsible adult isn’t easy. It takes hard work and diligence to teach your children skills like money management, and it won’t come overnight. With some work and open conversations between you and your child, you can give them the tools they need to eventually succeed on their own.