Saving Up: Ideas for Teaching Your Kids Better Financial Habits
Tuesday, November 17, 2015, 6:00 AM | Leave Comment
Children who learn financial habits from their parents become adults who are better equipped to handle money. If you are a parent, it is essential for you to teach your children sound financial skills.
In the United States, the average credit card debt per household is approximately $8,000 and the average student loan debt is approaching $30,000.
As you can see, the financial future of your children lies in the education you provide for them now.
If you are not sure how to teach your children about money, there are plenty of resources, tips, and tools available.
Here are four ideas that will help you teach your children better financial habits.
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Save a Portion of Their Income
The habit of saving money must be instilled in children at a young age. Since habits become ingrained as they are practiced, it is essential to reinforce the concept of saving every chance you get.
When your children get allowances, birthday, or holiday money, require them to save a portion in a bank account or even just a piggy bank. As they put money into the account, they will get excited as the balance grows.
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Model Proper Financial Habits
Parents are their children’s first teachers. Believe it or not, your children emulate every move you make. This includes your financial habits.
If your children see you balancing the checkbook and being responsible with money, they are more likely to follow suit.
Conversely, if they see you juggling bills and bouncing checks, they will manage their money in a similar fashion.
Show them by example how you save money, keep track of it, and spend it wisely.
For example, show them how you save by cutting grocery coupons together, or looking at an Autobank of Kansas City database and show them how you compare and price cars you are thinking of buying.
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Read Financial Books with Your Kids
There are plenty of kid-friendly books that teach children about important financial concepts.
Take time to read a few with your children. After reading, you and your kids can have fun practicing the concepts in the book and will get a kick out of completing financial projects with you.
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Teach Them to Control Their Spending
As the holiday season approaches, it is easy for parents to spend a lot of money on kids.
But remember, this time of the year can provide teachable moments for your children.
Create a budget, and show your children how you are sticking with it during the holiday season. This will teach them that they do not have to purchase every item they see.
By implementing these ideas, you can give your children the gift of great financial habits, and put them on a path for future success.
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