Guest Post by Samantha Green of BusyKid
Parents tend to shower their kids with presents but if you want to give them the best in life, you can do better than just going on a spending spree for them. Go with teaching them about money matters instead.
Your kids are never too young to learn about money and finance in general. In fact, you’d be doing them a gigantic favour if they learn financial literacy at a young age.
Schools, after all, don’t teach anything of the sort. By helping them become financially literate as early as possible, you’ll be setting them up to for financial success when they grow up.
Here are some financial matters you can teach your kids today.
Teach them the concept of money
Lessons on the importance of money, what it can do, and how to earn it will satisfy their curiosity about it. They will also dispel any notion they may have about money, like thinking that an ATM just spits it out for the taking.
Assign them chores
We always say chores are good for our kids, but now there is some science to back up that claim.
According to a two-decade study by researchers from the University of Minnesota, doing household tasks from as early as three years old is one of the best predictors of having successful children when they reach their mid-20s.
The study says adults who did chores as kids are generally able to graduate, embark on a career, and lead happier lives. Now that sounds like something all parents would want their kids to have.
Consider giving them an allowance for chores
An allowance for chores is not compulsory, but if you’re going to teach your kids financial responsibility, letting them earn their own money through chores sounds like a good enough money-related lesson for them, doesn’t it?
And while they’re earning their money, you can make a pitch about saving up and how important it is. A few more lessons about making priorities and living within means will be just as precious.
Tell them about the pros and cons of credit
Everything runs on credit, so it only makes sense for children to understand clearly what it’s all about, and that it can be both good and bad depending on how people handle it.
Your kids may be too young to learn how stocks and bonds and other investment vehicles work. Still, it can’t hurt for them to know that the concept of using money to make more money exists, and that they can do it themselves if they want.
Who knows, the idea of investing may wake up the Entrepreneur in them and they will start getting into whatever small business kids are capable of doing nowadays.
Teaching your kids the things mentioned above prepares them for the financial situations that they are bound to find themselves in as they grow up. Armed with your money lessons, they should be able to tackle any challenge and end up succeeding financially as adults.
About The Author
Samantha Green is the Content Marketing Strategist for BusyKid, the first and only chore and allowance platform where kids can earn, save, share, spend, and invest their allowance. A mom of two, she enjoys spending time with her kids and reading books to them.
Note from the Editor:
What did you learn about money as a child? Are you passing your money lessons (or money fears) onto your children? We’ve started giving our 5-year-old son pocket money in exchange for chores. He saves it up to buy Lego.