Raising Money Smart Kids
One of the main reasons why so many people have trouble managing their money is because nobody showed them how. They were not taught at home, at school, or at church. Unfortunately, they were taught how not to manage their money and most ended up in a financial mess. Because of this reality, it is as important as ever to make sure that we teach our children how to manage money so they can avoid the pitfalls that many of us experienced.
The earlier you teach your children to manage their money, the better. There are several influences on television and social media that teach and pressure children and young people to spend. Unfortunately, there are not as many influences to show them how to save their money. You can teach your child the following good money habits at an early age:
- The Difference Between Wants and Needs
When children receive money such as gifts or an allowance, you can sit down with them to plan how they are going to use it. This is the simplest form of a budget. Part of that budget should include regular savings, whether it is in a piggy bank or the local bank. Also, I think it is a good idea to teach your children about giving to others. It can be to a local charity, community organization, house of worship, etc. Sharing with others is a lesson that begins early and is a good part of money management. Finally, it is a good idea to teach your children the difference between wants and needs, even if you can afford to buy your children what they desire. Many adults get into financial trouble because they spend a lot of their money on wants, and they do not have enough left for their needs.
While parents are preparing our children to be scholars and athletes, it is equally important to teach them to be financially smart. Budgeting, Saving, and Giving are important topics for adults. If they learn this information as children, then it can save them a lot of stress and heartache related to money in their later years. Remember, it’s never too early to teach and never too late to learn. All the best.
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