Part of being a parent is preparing your kids to live productive lives once they become adults. While this includes things like getting a formal education and learning how to take care of themselves, many parents neglect to give their children proper lessons in personal finance.
Whether this is an innocent omission or it’s glossed over due to talking about finances being taboo, it only does a disservice to your children is you send them out into the world without knowing at least a few basic principles of finance. To help you in teaching these things to your children, here are ideas to teach your kids about money while they’re young.
To Delay Gratification For Something They Want
Especially when kids are very young, they can’t understand or fathom the idea of delaying their own gratification for any reason. When they want something, they want it now. And while this often works out for them, this isn’t a trait that should be indulged for long.
Consequently, Laura Shin, a contributor to Forbes.com, recommends that, from an early age, you teach your children that it’s possible and sometimes necessary to delay their gratification for things they want. If you can teach your kids how to not buy something impulsively or spend money now when it should be saved, you can save them a lot of hardship in the future.
How To Earn Money
From a young age, your children can learn about earning their own money. When they’re little, you’ll have to be the one giving them simple jobs to do and then compensating them appropriately. But as they get older, it’s wise to encourage your kids to get jobs of their own.
According to Madison Dupaix, a contributor to The Balance, it can be even more beneficial if you can nurture any entrepreneurial spirit your teen has by helping them to start their own business. As long as their idea is safe and legal, like not pet sitting for animals that will harm them or using proper equipment for landscaping, your teen could learn so much more than just the basics of making money.
The Importance Of Saving
Not only should you teach your kids about making money and then wisely spending that money, but you should also stress the importance of learning how to save money for a future purpose.
To help make this idea stick more, DaveRamsey.com suggests that you have your children save their money in a clear jar so that they can visually see how their savings grows and grows as they add money to it and abstain from making withdrawals.
If you want to give your kids the best chance of finding financial success in their adult years, consider how you can best teach them some of the financial principles mentioned above.