When it comes to money, it’s never too early to start learning about how it works. The sooner that you expose your children to important fiscal lessons, the sooner they will begin to adapt to the world around them. Like it or not, money makes the world around.
Knowing how to use money to your advantage may not necessarily bring you happiness, but it can certainly make your life a lot more comfortable. As a parent, one of the most valuable things that you can give your child a head start. Some kids who learned about money early, have an idea about how to claim deductions on their taxes, establish credit, and even invest in the stock market by the time they’re seniors in high school. Here are some of the best ways to start teaching your kids about money.
Play Simulation Games
Kids learn best when you manage to make the lesson fun! Start playing games that involve money as early as possible. Not only do games like Monopoly help with basic addition and subtraction skills, but it’s also a great way to bond!
You can even think outside of the box and create scenarios of your own such as cashier, bank teller, and even accountant!
Bring Your Child To The Grocery Store
One of the most common reasons that kids and teenagers have no concept of the value of a dollar is because they’ve never been forced to! Taking your child to the grocery store and teaching them how to work within a budget will teach them that nothing in life is free,
Don’t be afraid to get them involved in adding up everything that you’ve put in your cart. If at the end, you don’t have enough money for everything, let them solve the problem by deducting items!
Open a Bank Account For Your Child’s Allowance
An allowance is a great way to encourage your child to earn and save. Rather than giving them money, an allowance earned through doing chores can be an incredibly effective way to teach them how to manage money. When they reach a certain amount of savings, consider opening up their own bank account, so they can learn how to make their money grow.
In addition to teaching your child how to manage money and increase their wealth, don’t forget to teach them the value of sharing their wealth as well.
As your kids get older, they’ll use the money smarts that you taught them at a young age. It’s likely that their peers who haven’t been given the same exposure to how money works from a young age will be struggling to manage their money. However, your child will be lightyears ahead of others their age.