How to Teach Your Kids About Finances

How to Teach Your Kids About Finances

We all want our children to have happy and productive lives, so we try to give them the tools they need to navigate life. For the most part, we focus on things like making sure they’re well-educated, polite, and healthy. These are all important, of course, but they’re not all-consuming. If we don’t teach our children about finances from an early age, then we run the risk of them ending up like the majority of other Americans: which is to say, in a poor financial state.  Check out a few ways you can teach your kids about how to handle money the correct way.

Patience and Money Go Hand in Hand

Wouldn’t it be nice to be able to afford whatever you wanted? There’d be no reason to budget, save up, no reason to wait whatsoever. But also you’re one of those rich and famous folks, then this isn’t realistic. We need to be patient, and slowly build up the cash we need to buy stuff. As such, one of the best things you can do for your kids is teaching them the link between being patient and getting what they want. If they need to save their pocket money before they can buy a game, they’ll have learned a valuable life lesson.

Be a Role Model

Our children learn much more from us than we think, and sometimes more than we’d like. They don’t just learn what we teach them vocally – they learn from our actions too. If you practice bad financial habits, then the chances are they will too. So take steps to get your finances in order. You can learn how to get out of debt fast, set a monthly budget, avoid impulse spending, and so on. You’ll be helping your long-term finances, and being a positive role model for your children at the same time. Nice!

Let Them Make Their Own Mistakes

It’s all good and well telling our children not to make financial mistakes, but that’ll only help them to a degree. Experience is the best teacher! As such, one of the best ways to educate your children about money is to let them make their own mistakes. Now, don’t let them sink all of their money into a Ponzi scheme. But if they’re going to buy a toy, and you know that they won’t have any more for another month, then let them buy it. They’ll quickly learn the lesson!

Getting a Job

Parents are mixed when it comes to the issue of getting a job. But really, could it ever be bad? They’ll learn how to manage their money, understand that you don’t get anything for nothing, and build up a work ethic that’ll see them through the good and bad times. It’s a no-brainer.

Saying No

Finally, be prepared to say no to a child’s request! You have to say no to things all the time because of money issues. Say no, and they’ll learn that you can’t always have everything in life.

 

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