Let’s face it: money can be a complicated, daunting thing to talk about with your child. It may be tempting to keep finances far from your child’s mind until they are in their teens, but teaching kids the value of money at a young age can help them be more confident with their finances as they grow older. Here are some tips to help teach your children how to become fiscally responsible at any age.
Talk to them about money
You can start getting your kids comfortable with money by showing them what money is and how it works. While they’re young, teach them what coins and dollar bills are. As they get older, show them how money works. When checking out at the supermarket, explain what you are doing in a way that will make sense to them at their age.
Teach them the value of saving
If you give your children an allowance or spending money, be sure to encourage them to save a little of what they have to use later. Have them put that money into a SaveAbles Kids Club account to use when they have enough for a bigger purchase. If they blow through their allowance and ask for more, hold your ground on not giving them any extra. Let them know that “money doesn’t grow on trees,” as the saying goes.
Talk about credit and debit cards
It can be easy for kids to view credit cards as magical cards that buy you whatever you want with one swipe. Talk to your kids about what credit is. Take the opportunity to talk about budgeting and how to use cards wisely.