10 ways to teach your kids/teenagers about money
It’s important to create awareness about money and its value for your kids from an early age. If you don’t, they tend to be more reckless with their decisions and lack knowledge of the consequences you have to face when you’re careless with your money. We’ve got 10 simple tips for teaching your kids about the stuff that doesn’t grow on trees:
- Take them to a bank and create a savings account for them. Try to equate the savings account with something that they would be interested in committing to. For example, if your child is going through a “superhero” phase, tell them that all superheroes have to put money into a savings account so that when they’re done fighting crime, they don’t have to work anymore!
- Teach them the meaning of “work for your money” by rewarding them if they do special tasks. We shouldn’t really reward children for cleaning up their own (they’ll learn to expect it) but if they help out in the garage, throw them a little change for their work!
- When you take them out to dinner, teach them what a credit card and debit card is.
- Have them write a list of things they absolutely need (like new pencils for school) and want (the newest pair of “cool” jeans). Explain that you can cover what they need but any “wants” need to be saved for.
- Teach them about working and jobs. When you’re at the grocery store or a restaurant, explain to them the jobs all the people around them are doing.
- Once a month, sit down with them and look at how much they’ve saved. If you teach them about the value of things, they will know more or less if they have to wait and save more for their toy or gadget.
- Try not to give your child a credit card until they are old enough to understand the ramifications of debt. Spending money that isn’t their own at an early age can lead to overspending and irresponsibility.
- Take them to get their first chequing account set up when they get their first job. Let them see a void cheque and show them what all the numbers mean on the cheque.
- When they are older (15+), have them pay a “fee” for something. You can call it whatever you want, but collect that fee every month to get them in the habit of making payments. Save that money for them if they ever need to tap into extra funds.
- Believe in your children and treat them like adults. If they learn responsibility earlier, they will only benefit!