As a responsible parent, you want to ensure that your child is healthy, safe and happy. Part of instilling confidence and self-esteem within your child is making sure that they understand money and finances, and that they’re ready when they do eventually fly the nest into the big wide world. It’s never too early to start teaching your youngsters about money. Having an open and transparent attitude to family finances and being there to answer any questions that your toddler, adolescent or teenager may have means that they’ll be clued up when they have to make major financial decisions later in life. Take a look at how you can teach your kids the value of money.
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Structured Play
Two-year-olds are now able to open up an iPad, swipe across the screen and watch their favorite nursery rhyme on youtube.com without any intervention from mom or dad. Technology is taking over, and this is the same when it comes to money. Internet banking and paying by card means that toddlers rarely see any real money. When you are playing shop or heading down the local store to purchase a small item, get your real life notes and pennies out. Allow your child to feel the genuine article, not a plastic replica. Little kids love nothing better than feeling more grown up than they are, so allow them to pay the guy behind the counter when you pick up your newspaper and see if they can count their change.
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Family Finances
As your kids grow older, they may begin to want for more things whether this is the latest smartphone, console or tablet. If you are struggling to afford their wishlist, it’s vital that you tell them why. You may have recently renovated the kitchen, had to fork out for a new gasket on the car and paid for them to head off on their annual school trip. This meant you had to take out more short-term loans and credit cards putting you into debt. Explain to your child that this is manageable but only if you reign in the spending for a while. If this situation is familiar to yours, consider heading to a site like consolidate.loan and compare debt consolidation lenders. This way all those tiny chunks of debt can be merged into one monthly repayment.
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Incentivise
The best way to get kids saving is to make it worth their while. As you give them pocket money, they may choose to save up for something like a drum kit or a trip to the cinema. Motivate them by pledging to top up their funds with $5 every time they save $20, giving them an extra impetus to save. As they see their nest egg accrue, you may want to introduce the idea of a bank account or other avenues down which they could see their money grow even further. As they get older, it’s important that children understand the importance of saving, so they don’t become frivolous with money as they enter college and adulthood.
Financial education is only sometimes taught in schools, but it should also be an integral part of the home. Teaching sound money sense from an early age will enable your child to grow up feeling confident, content and happy when budgeting, saving and spending.