How well do your kids understand money? Depending on their age, they may already know that money is what’s used to purchase the things we both need and want. They may also be aware that the more money you have, the more things you can buy. But, how well do your kids understand money?
Do they know about the benefits of budgets and saving money? If not, you may want to begin teaching your kids about money.
The Benefits of Teaching Your Kids About Budgeting & Saving
You may think that your children are too young to learn about creating budgets and saving money. However, you may be surprised at how young children can grasp the concept of savings. Children who learn about money tend to carry these lessons into adulthood. The earlier you begin teaching your children about money, the more likely it is that they will be financially smart adults.
If you want your children to have a healthy relationship with money, you should start teaching them basic personal financial concepts like saving and establishing financial goals.
Teaching Your Kids About Budgeting & Saving
Now that you understand the benefits of teaching your children about money, how do you actually go about schooling your kids on saving and creating budgets. Admittedly, it’s easier for older children and teenagers to grasp the concepts of budgeting and saving money. However, it doesn’t have to be difficult to teach young children these same concepts.
It’s not too early for a five-year-old child to begin doing chores in exchange for a small allowance. Explain to your child that they only receive an allowance for completing chores around the house. You can these use their allowance as a means to begin teaching them about saving. Decorate a jar with your child’s name and encourage them to save a part of their allowance for something that they really want.
This method makes it easy for young children to understand that saving money can ultimately get them the things that they want. As your child grows, you can increase their allowance and include them more in family financial matters.