Are your kids already starting to ask for money? If they’re like most kids, they probably are! Learning how to handle money and make healthy financial decisions is an important life skill, and it’s never too early to start teaching your kids about it.
In this blog, Debt Relief Canada from A. Fisher & Associates share top tips for parents looking to teach their kids healthy money habits. A. Fisher & Associates help hundreds of families beat debt through expert solutions and free advice on everything from mortgage loans to Ontario’s debt forgiveness program. Find Out More HERE.
Check out these twelve tips for teaching your kids healthy money habits!
1. Talk about money early and often
Don’t wait until your child is a teenager to start talking about money. Money should be an open topic of conversation in your family from an early age. This will help your child develop a healthy relationship with money and understand its importance in everyday life.
2. Lead by example
As a parent, you are your child’s first and most important role model. If you want your child to develop good money habits, it’s important that you lead by example. Be mindful of your own spending habits and make sure you are setting a good example for your child to follow.
3. Teach your child the difference between needs and wants
One of the most important money lessons you can teach your child is the difference between needs and wants. Help them understand that there are some things we need to live (shelter, food, clothing) and some things we want (toys, games, expensive clothes). Teaching this lesson early on will help your child develop good spending habits later in life.
4. Help your child understand the value of money
It’s important that your child understands the value of money and how it works. Help them to understand that money is something we use to exchange for goods and services. Teaching your child about the concept of supply and demand can also be helpful in this regard.
5. Encourage your child to save
Saving is an important money habit to develop, and it’s one you should encourage your child to start early. Help them set up a savings account and show them how to deposit money into it regularly. You can also match their savings deposits, which will help them grow their savings more quickly.
6. Help your child make wise spending decisions
As your child grows older, they will be faced with many spending decisions. It’s important that you help them learn how to make wise choices when it comes to spending their money. Teach them to compare prices and look for deals before making a purchase. Encourage them to think about whether they really need or want something before they buy it.
7. Teach your child about budgeting
Budgeting is another important money habit to develop. Help your child understand what a budget is and why it’s important. Show them how to create a budget and stick to it. This will help them in their own lives as they get older and have to start managing their own finances.
8. Encourage your child to give
Giving is an important money habit to instill in your child. Help them understand that there are people in the world who are less fortunate than we are and that it’s important to help those in need. Encourage them to donate their time, money, or belongings to charity.
9. Help your child understand the importance of credit
Credit is something that will come into play later in life, so it’s important to start teaching your child about it now. Help them understand what credit is and how it works. Show them how to use credit wisely and how to avoid falling into debt.
10. Have regular family financial discussions
Money should be an open topic of discussion in your family. This will help your child feel comfortable talking about money and asking questions about it. It’s also a good way to stay on top of your child’s finances and help them develop good money habits.
11. Teach your child about investing
Investing is another important money lesson you can teach your child. Help them understand what investing is and how it works. Show them how to research different investments and make wise choices with their money.
12. Seek professional help if needed
If you feel like you need help teaching your child about money, there are plenty of resources available. There are financial literacy programs offered by many organizations and institutions. You can also consult with a financial advisor or planner to get help teaching your child about money.
It’s important to start teaching your child about money early on. Help them develop good money habits and encourage them to make wise financial decisions. These lessons will serve them well throughout their lives.