Good Morning, Kansas City! Money habits start forming from a young age, and there’s a lot of little things parents can do to help them become good habits. Our Mom Squad Ambassador, Brigette, has some great tips for teaching your kids about money. Take a look…
5 Easy Tips on Teaching Kids About Money
So.. I know it’s actually “a penny saved is a penny earned” but I never really believed that. I always felt like money was something that was taught in one fashion. Pay bills and save the rest. As I got older and my circle of friends and mentors grew, I learned so much more than just paying bills and saving money. I learned how to make money stretch, how to make it grow and how to share the wealth.
Now that we home school, we talk about different ways to not only make money but budget, plan and save money.
Here are a few guidelines that we use with our kids when talking about money.
#1 Teach them value
From an early age we always talked to our kids about money. When we head out to shop, we always show the kids options when looking at toys, clothes or other things that interest them. We allow them to browse, check prices and see if there are any other options that would allow them to get more and spend less.
#2 The difference between want vs. need
Something that I’m sure kids barely grasp the true understanding of lol. I always allow my kids to make choices when it comes to their money. I think the best way for them to learn is to experience it for themselves. Any time they want a new toy, candy and something that is not a “parent duty” I allow them to decide if they want to purchase it or not by asking them if they need it or not and why.
#3 Saving & investing from an early age
we are pretty old school when it comes to this one. No, we don’t have an account set up for them ( though we probably should), we use a good old fashioned piggy bank. Well this day in age it’s a Paw Patrol bank and Emoji banks lol. Any time they earn, receive or find money, it has to go into the piggy bank before they can spend it. Once it’s been in the bank then they can decide where it needs to go. When it comes to making investments, they really don’t have many options. They can buy something that will benefit them in return. Even though they don’t “invest” much, my husband and I always talk to them about it when they are trying to decide.
Ok this one is more my line of work. I budget for EVERYTHING! I am horrible at math, but money…. I know. When shopping, I tell the kids my budget and what I have to get first off my list. Once my list is checked, I show them if I am over or under my budget. If I am over, I allow them to look around the store to see what else I could get without going over.
This may or may not be something that your family practices, but in ours it is our golden rule when it comes to money. Even though they don’t tithe as frequently as we do, they pay their tithes on Holy Days and keep a portion for the feast. If we are out and about and they have some of their coins on them ( they usually sneak a few) , if we run into a homeless person they give. Donating money to someone is something that they take pride in. Helping those in need will make you feel richer than you already are.
Everyone lives, spends and saves differently, so these tips are what we do. I hope you find them helpful when talking to your kids and family about money!
Brigette blogs at www.bybrigettedanielle.com
From iFamily to Yours,