Teaching your children about finance
Although schools are required to teach children financial literacy, this education usually only takes place later in their school career. By this stage, many children may have picked up habits from their parents, whether good or bad. A child’s view of money will often carry through into their adult life, so it is important to teach children the value of money early on. Here are some ways you can help a child learn about finances.
Give them a piggy bank
A great start to a child’s financial education comes from possessing a piggy bank. This enables them to start saving, most likely in small amounts of pocket money.
This could lead on to them saving for something they really want. If there is a new toy they like, encourage them to save up slowly over time to instill financial discipline from an early age. There are even online tools to make budgeting and planning fun for kids.
Teach basic math early on
Even before they start kindergarten, a child can get a boost from learning basic math. If you teach your child some simple math skills, like addition and subtraction, they can have an understanding of the subject matter before they start at school.
You don’t have to be a mathematician yourself; there are free resources online to help parents teach basic skills to their kids.
Open a bank account
Many banks allow special children’s accounts to be opened from an early age. This can be a great way for them to learn about saving in a bank and watching their money grow – they can even learn about interest. Some accounts even offer bank cards when kids get a little older, helping them to learn about spending on plastic.
And as they move into their teenage years and get their first paper route or other part time job, you can encourage them to explore savings accounts of their own.
Get paid for doing chores
Wouldn’t this idea have been great when you were a kid? Your Mom tells you to take out the trash, your Dad tells you to mow the lawn and rake the leaves, but getting a small financial incentive would have not only boosted your satisfaction of completing the chore but you would have probably done a better/quicker job which wouldn’t have gone un-noticed.
The same applies in adult life today, you work hard, be thorough and do the best you can do and it doesn’t go un-noticed by your boss (most of the time!!)
Developing a good understanding in childhood can help people make good financial decisions as adults. You want the best for your children, and helping them form good habits and values with regards to their finances can really help them get the best out of life.
These simple techniques are easy to facilitate and can have really good results, so consider incorporating them into your child’s upbringing, however, if you need a little help yourself then let us help you find the loan you need to get you out of any little emergency.