How to teach your kids about money
Now that you're a parent, you have to start thinking about how to teach your kids about money. If you don't want them to be broke and unhappy when they grow up, you need to start early. Here are some tips for getting started:
What kids need to know about money
First, let's talk about what money is. Money is a tool that helps us get what we want. It can be a means to an end, like buying food or paying for school supplies. Sometimes it’s just fun to spend money on things we want or need—like the latest video game or the latest sneakers (or both). But most of all, money is how we help others. Whether it's buying gifts for friends and family members at holidays or donating to charities that are important to us, giving back by making charitable donations is one of the best ways kids can learn about generosity and philanthropy at an early age!
Finally, there’s one more thing kids should know about money: saving up for their future! Every penny counts when you're saving up for something big like house payments down the road—or even just small purchases like books and electronics!
These days more than ever before it's important that children understand how different types of investments work so they can make educated decisions when deciding what type(s) suit their needs best."
Teaching kids about saving
Teaching kids about saving is important. They need to know the value of money and how to save for what they want. That way, they’ll be more likely to make good financial decisions as adults. The sooner you start teaching them these lessons, the better! Here are some tips:
Teach them that money doesn't grow on trees—or anywhere else! It has to come from somewhere, so teach them how hard you have to work in order to earn it. And be sure they understand that unless you cut down a tree and chop it up yourself—and then turn it into lumber for furniture—that no one will magically hand over a bunch of wood just because your neighbor has some extra cash lying around his house collecting dust at the moment (sorry!).
Explaining how much things cost can be tricky because we live in such an expensive world today; but try not being too specific about amounts for now (e.g., saying "thousand" instead of "ten thousand"). This helps avoid confusion when explaining concepts such as inflation or interest rates later on down the road when those terms apply directly towards money management issues rather than simply being abstract ideas used during discussions with friends over dinner tonight...
Setting up a savings account for your child
If you have a young child, you may want to consider setting up a savings account for them. This can be as simple as creating a sub-account within your own checking or savings account. Or, if you'd like to keep things separate, consider opening up an entirely new separate account in their name.
Once the account is set up, teach your child how it works by giving them some money and letting them start adding funds on their own. If they're old enough to understand the concept of interest and compound interest (and even if they aren't), explain that every time they save money it will grow over time because of interest earned from the bank. You can also explain that while they may earn more at some banks than others, there are certain benefits that make one better suited than another depending on what kind of customer experience each offers—for example: free ATMs near their house; free debit card usage; lower fees; longer hours during which accounts can be accessed by customers who don't live locally.
How to encourage your kids to save money
The best way to get kids used to the idea of saving money is to start when they're young. When your child starts school, you can set up a savings account for him or her. Then, as he or she gets older, you can show them how to use it. Help them make deposits and withdrawals from their account at a bank near your house or in the bank where you have an account so that they get used to making deposits and withdrawals with their debit cards (which are linked directly with their checking accounts). When he or she reaches high school age (or even earlier), teach them about using credit cards responsibly by showing them how much interest rates have increased over time and how payments affect these rates (this will also help prevent identity theft).
When the time comes for college tuition bills or car payments on top of rent and utilities each month—not just once but every single month—your child will be able to deal with these expenses without having too much trouble because they learned financial responsibility while growing up!
It's never too early to start teaching your children about managing money.
When it comes to teaching your children about money, the earlier you start, the better. Think back to when you were a kid: Even if you didn't earn your own money, chances are that at some point in your childhood someone tried to teach you about how bills work and why saving is important. Whether or not those lessons stuck is another story—but there's no reason not to try again!
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The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.