This is a collaborative post
Your kids learn from everything they see and do; children are natural born learners, and they love to take in new information, and they look to you most of all to help shape them into the person they’re destined to become. And because of this, one of the most important areas you need to show good behaviour and habits towards is money management.
Because kids need to know how the world works, and money makes it go round. More specifically, they need to know the kinds of costs they’ll run into, especially when it comes to larger expenses like a house or car, to ensure they develop good saving and spending habits. But what can you do to guide this?
Use The TV as a Mini Learning Tool
The TV can show a lot of conflicting views to your kids, especially when it comes to money. And even age appropriate cartoons can give them the wrong idea, mostly when money is never, ever mentioned! Kids won’t ask how much something costs if that idea is never presented to them, so it’s a good idea to watch along with your little ones, and ask questions that relate back to money, and how much they think the characters might have.
Bring Your Kids Along When You Buy Big
Kids need to see as much of the world as possible, to help it make sense in the long run, and to help form healthy and realistic expectations of life tasks as they grow up. And that’s why you should think about taking your kids along with you when you invest in big life expenses, such as a house viewing or visiting a car dealership.
Indeed, the latter option alone can be a wonderful learning experience for anyone over the age of 10. It can help them to understand why used cars can be better than new cars, and how to approach the selling process. You could ask them about what they saw and what they thought on the way home, and help them to reflect on just how important these monetary situations are going to be.
Don’t Be Afraid to Expose Them to a Budget
A budget is how you run your household, and you should never be afraid to show this side of the money reality to your children. It’ll help them to truly understand the value of money, and just how much things actually cost, and it’ll really help them to appreciate just what you do to give them new toys every month!
Similarly, it’ll help them to understand how you allocate pocket money, or how you grant them an allowance, and they’ll learn that they need to do something to earn more, rather than just ask for or complain about it.
Life expenses are going to be a drain on your child’s bank account one day. Make sure you show them how to be responsible and confident with their money, even in the smallest of ways.