Educating your children about financial wellness will help them build healthy spending habits for the future. Here are some great ways to teach your kids about money.
1. Play Games That Involve Money
One of the best ways to teach a lesson is by doing so without your child even realizing that they are learning. Play games that include a financial element like Monopoly or Life and help them strategize during the game. This will help your child learn the importance of budgeting and planning for the future.
2. Make a Wish List With Your Child
Sit down with your child and have them list five things they want. Then have them rank them from most important to least. Once the list is created, strategize about how they can obtain their wishes.
3. Teach While You Shop
Take your child shopping and actively explain your decision-making process. Tell your child how much money you have to spend and what your priorities are. Show them why you are picking one item over another and explain things like coupons and discounts.
4. Give An Allowance
Giving children an allowance gives them first-hand experience with money. They learn the rewards of careful spending and saving and the risks of making impulsive spending decisions.
5. Split Money Into Categories
Get a piggy bank that splits money into spending, saving, and giving. Teach your child about what each category is and how they are allowed to use the money in each section. Place the piggy bank next to your child's wish list so that their spending and saving goals are clear to them.
6. Involve Your Kids In Major Purchases
Deciding where to go on vacation? Buying a new appliance? Include your kids in the process and have them help with the research. You can show them the factors that go into making the decision and have them help you compare options before making the purchase.
Teaching children about finances can be easy. It just takes a bit of planning, a little patience and some creativity.