Simple Steps To Raising Money-Savvy Kids
Did you know that children’s financial habits are set by the age of seven? They also start picking up on money concepts as young as three! The habits they emulate come almost entirely from parents and grandparents. It’s true! Money management is a learned behavior, so the earlier you focus on educating children, the better.
Here are seven tips for getting started at any age:
Set a good example. Your children listen to everything you say and do! Stay positive toward money and be conservative with your spending.
Encourage a habit of saving. Spending habits are obvious, but the act of saving is typically invisible. Teach through intentional and frequent conversations about your saving goals. Let them set and reach saving goals themselves.
Present money-making opportunities. People place more value on the money they’ve had to work for than the money they’ve been given. Providing an allowance in exchange for chores or encouraging earning from odd jobs provides an opportunity to comprehend the value of hard-earned money while learning the power of saving.
Promote smart spending using budgets. Budgets help create a clear distinction between needs and wants. Work with your kids to show them how impulse spending can impact both their budget and their savings’ growth potential.
Educate them on how money grows. Teach your children about compound interest. Bank that allowance and help them see their money grow!
Parents and grandparents have an important role in passing along good financial habits and advice to children. The time to get started, no matter the age is now! Visit our website for more money management resources!