The world has shifted to enticing kids with trends, fashion, gadgets, and the tastiest treats. But as parents, we still need to inculcate money talks with our kids. How can mums and dads go about money with kids? How can parents prepare their kids to handle money better? These questions deserve excellent answers since family planning has no time for money management.
As a parent, you already know raising kids with a sense of money management is a wise decision. So, you must educate your kids in inspirational and fun ways of managing money. We’re here to help you with many fun and effortless ways your kids will enjoy learning about money.
The first step to educating kids on money management is to help them figure out their wants and needs. For instance, their needs include healthcare, clothing, shelter, food, and education, while their wants may include new phones, designer sneakers, movie tickets, or candy.
Next, you can use home items to explain better. For example, use items in their bedroom to distinguish if it is a want or need. These practical questions will improve the idea of what to prioritize when spending and leaving money for future necessities.
Instead of just providing a piggy bank for your kids to deposit as they please, you can help them portion their money into spending, savings, and charity. The habit will be easier to follow while they’re young, and they will be able to deal with large sums as they get older.
For example, you can show them your budget and how you share the percentages. Another way is to enforce short-term and long-term saving goals. This will help them know how to save for cheap items like video games and expensive items like a bike.
Allowing kids to make purchases will help them know the feeling of buying things they want. It will also teach them the procedure involved in getting things like how to budget, finding what they want, paying for it, etc. For example, you can give them an allowance during a family vacation or big trip and let them get their souvenirs alone.
The act will reduce or stop them from asking you for money and teach them to minimize their budget to get what they want. In addition, the decision will feel real when buying with their own money.
Kids like games and enjoy participating in competitions. So, make money discussing a game. Challenge them to save a certain monthly amount to win a bonus. If they complete the challenge, you reward them with an incentive, but if they fail, they get nothing. There are many incentives to use in this game, such as a movie ticket, new pair of shoes, or whatever will motivate the kid to win.
Provide a safe where the kids can stash their money. A piggy bank is suitable for younger kids to stash their cash. But for older kids, having a savings account with a bank or a debit card is better. You can request cards like FamZoo, Greenlight, and gohenry will serve a good purpose by notifying you whenever there is an activity on the card.
Spending is also part of saving. Knowing where your money is going will make it easier to understand the power of money. You can track expenses using a bank or debit card app or the traditional way.
Ensure your child records whatever they spend their money on each day and total the expenses at the end of the week. The calculation is an eye-opening experience that will encourage them to think before spending. It will also show them how fast they can reach their saving goals if they spend less or have a different spending pattern.
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