Be a Positive Example
Don’t overlook this step because it’s one of the most important! Kids learn by example, especially the example of adults they spend a lot of time around. You can have a positive effect on your child’s financial future simply by managing your own money well. This means creating a budget and sticking to it, avoiding impulse purchases, saying “no” to their requests sometimes and providing a safe space for them to talk about money with you.
Have Financial Conversations Early
As previously mentioned, having conversations about money is crucial for your kids to take finances seriously. Be open about financial lessons you’ve learned at their age, check in to see how they’re doing financially and be someone they can lean on for guidance.
Let Them Make Purchases, Too
This is something you can even incorporate into the lives of your youngest kiddos. While your younger children might not have money of their own quite yet, you can still give them the money you’re paying with and let them make the transaction. For example, if you’re at a store and they’re being rewarded with a new toy, give them some cash and let them hand it to the cashier. This teaches them from a young age that new things come with a cost.
Help Them Open a Savings Account
When they’re younger, a piggy bank works just fine for saving purposes. Once they reach the age where they have a part-time job and want somewhere to put the money they make, consider opening a savings account. The earlier they start saving, the better!
Use Age-Appropriate Chores for Allowance
Allowance is a wonderful way to raise money-smart kids, but only when it’s done the right way. Give your kids an allowance for completing a task to teach them that work is rewarded. When they’re younger this can be as simple as cleaning their room, feeding the pets or picking up their toys. Once they get older, they can help with things like cleaning the bathroom, folding laundry, doing the dishes or helping cook meals.
Budget With Them
Budgeting is especially important once your child is old enough to be working and making their own purchases. Help them come up with a realistic budget and show them the best way to track their spending, whether that’s using pen and paper or an app on their phone.
Yes, parenting can be taxing and tricky, but above anything it’s incredibly rewarding. Join the generation of parents who want to raise their kids to be financially wise! Visit our website to learn more about the services we offer or to open your kid’s first savings account.