It is all about money; receiving and spending it. This is why you need to teach your little ones how to do it. Yet, the sooner the better. Nowadays, we regard paying bills has become a more complicated task for some. Though if it is for some grown adults, it is a more challenging assignment for kids. This is why we came up with this article. Because we think of you, hence, we made it easy for you, millennial parents. Just read the following piece and start adopting one or more deeds. We promise you a well-financially funded family.
Demonstrate the value of money
Experts recommend youngs kids to use glass jars instead of piggy banks. That way, they will get to see the money they have saved. Yet, this is not the only successful method they suggest employing in terms of teaching little ones about money.
Another trick is the following demonstration. All you need is a bucket and go to the sink with your kid. Once you have achieved this step, you put the bucket in a sink and fill it with water. Then turn it off. Hence, the sink represents the job, the bucket represents the bank and the water in it represents the money. Consequently, encourage your kid to spill all the water out of the bucket. You have no more water (money) left! If you want some, you need to go to the sink (work) and fill your bank account with cash again!
Talk yo your kids about money
In the present day, it is really challenging teaching kids about money because everything is paid either bill-less, meaning you use your credit or debit cards, through a machine or virtually. How are they supposed to understand if not taking your time to explain to them what is going on so they know the value of items? Take your time to do so and be patient.
Stress the importance of curbing impulse purchase
If your child receives an allowance periodically, there is an easy way to advise him/her after two weeks or so. After your little one receives a certain amount of money from you, s/he is going to be happy and spend it right away on toys, candies or books. Experts recommend parents to save all of the receipts made from those impulse purchases and show them to the children when they have spent all of the money. Ask them if those purchases were worthwhile. There, they would learn the value of money and/or products.
Discuss big purchases with your kids
Any substantial purchase lately? It is your opportunity to talk about it when your kid is present. Kids hear everything you say even though they might not be listening to the conversation. Anyhow, talk about this acquisition with your significant other when your little one is around. Did the asset require you guys saving for a long time? Does it have a particular meaning to the family? All the answers to these questions and more you can include in your conversation so the child knows the values of economizing.
Encourage teens to get jobs and earn money
Motivate your children to get jobs and earn money! Younger teens can work either babysitting or mow lawning. Regarding the older generation of teenagers, you can help them out getting a job at a retail store or restaurant. Once they get it, they will learn the value of money and what it takes to form a lifestyle.
Help your children open a bank account
It is quite productive for kids owning a bank account. Even if they do not work, they can set aside and monitor systematically their financial balances derived from allowances or holiday gifts. Additionally, parents can link up their kids’ accounts to theirs so they make sure their teenagers are not spending money audaciously.
Show your kids how to map out a budget
Experts recommend you make this serious financial talk with your kids so you guys can create a budget, evaluating incomes and outcomes. They also suggest teens go over these expenses on a period-basis so they are caught up. You will also want to consider bulky investments for the future.
Teach kids to use credit cards the right way
Parents need to school their children about the cons and pros of using credit cards. On the other hand, it can be a bit challenging for 18-year olds to have their own because they will need to have an income in order for that to happen. However, parents can make their kids authorized users of their CCs so they learn how to use them correctly and/or smartly. You, as a father/mother can monitor your child’s purchases record or if they are doing the monthly payments on time.
Introduce your kids to basic investing concepts
Educate your kid on new financial terminology and teach them the difference between investing and saving. This is really tactical, to be honest. It is like you are training your children for the future. They might start investing a chunk of their payroll smartly at a very young age.