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So my kids are the curious type - and finances come up again and again.. specially during Christmas when they are telling you all the things they want (or all the places they want to go). And frankly, some are simply too expensive.
The article below is not by me, its by basis, but I found these suggestions super useful - particularly letting them earn it, and talking to them about savings. I do that often myself.
I also find that games like monopoly help them understand money a little better.
Hope you enjoy the read.
More to come!
5 things you can do to
teach your children about money
by Team Basis
Buffett bought his first stock when he was eleven years old from the money he
earned. Richard Branson credits his sense of entrepreneurship to his spirited
mother Eve Branson, who instilled a strong sense of money management in his
the famed investors to those around you, the people who are most confident
about money are those who have had a strong financial foundation in their
childhood. Chances are you probably did not learn personal money management in
school. Sadly, children in schools today are not learning it either.
your kids about money is important for them to build healthy financial habits
so that they can fuel to their own dreams. Here are some of the ways you can
Talk about money
is a sensitive topic, sometimes even a taboo. Many parents would like to keep
their children away from money worries in childhood and avoid the topic. Even
if it is well-intentioned, such actions may end up making them nervous around
money life long. Talking about it is the first step to being comfortable around
money, especially in perceiving its value. Have calm conversations about
purchase or income around kids. This will make them aware of money as an
essential need for living and may keep them away from the two extreme
approaches to money: fear and disregard.
Let them earn it
a good way to teach them the value of money. When your kids are too young to
earn pocket money, you can start by giving them additional chores at home.
Don’t make it too easy by paying for work that they are already supposed to do
such as taking care of their things, or their homework. Find chores that will
give them a chance to relate money and work. Older kids could spend a summer
working at a friendly neighbourhood store.
Establish the idea of
saving before spending
it is a bawling toddler at a mall asking for a toy or an adult unable to resist
an expensive purchase, knowing when to control spending is a hard behaviour to
learn. The value of inculcating it as a habit from childhood is priceless. Use
your child’s pocket money or the money earned from their summer jobs as a start
to teach them about savings and spending diligently. Teach them to set a part
of their money into savings. Encourage their habit by matching their savings
with your contribution. Find out about the cookie jar system that can help you teach them about
savings effectively. It could also be a way you can teach them about delayed
gratification by using their savings to buy the things they want.
Open a savings account
is a crucial step in learning money management, one of the ways you can
formalize this step is to open a savings bank account. Most banks offer the
option for a children savings accounts with a variety of features. Some do not
have a minimum balance requirement, many offer an ATM card that teenagers can
use. Few also offer a chance to use the savings to invest in Recurring Deposits
and Insurance. Chose one that works for you and your child and start their
money management journey.
Walk the talk
never do as they are told but do as you do. As a parent, you have heard it and
experienced it as well. It is a chance to re-look at your own relationship with
money. Build an environment at home where money matters are discussed freely
and let them observe you living out above pointers. As a quote by Benjamin
Franklin rightly goes, “Tell me and I may forget, teach me and I may
remember, involve me and I learn“. It is all about involving, indulging
and inculcating money values in the right manner so that your children grow up
to be empowered adults making confident choices about their finances.
article was originally featured onBasis. Basis is a
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