Summer is the perfect time to begin educating kids in understanding the value of smart money management practices. It’s our job as parents to instill in our children and grandchildren the importance of managing our money wisely.
Proper expectations of handling money will be become a habit that not only builds confidence but helps us make smart choices with our money. Saving a portion of our income needs to be taught early. Children learning to save will be much better money managers than others.
For children to understand finances here are some good suggestions:
- Empower them to earn. Start chores young, giving your child relatively easy responsibilities around the house in exchange for money, play time or another reward. Showing them hard work pays off will give them a sense of fulfillment, not entitlement.
Encourage them to get a job. When old enough, encourage your kids to get a job. There are a plethora of activities,: babysitting, clearing tables at the pizzeria down the street, working at a summer camp, tennis or swimming lessons and tutoring. Whatever it is, working outside the home helps teach financial responsibility, social skills and time management all in one fell swoop.
- Try a prepaid debit card. Consider obtaining a prepaid debit card and depositing a small
amount onto the card each month. They can determine how much they have to spend and budget it week over week. This is a good lesson in developing spending habits. If they spend too much they may have to learn they made an unwise choice and deal with a zero balance. This lesson is invaluable. They have to learn money doesn’t grow on trees. It may even stimulate them to work harder if they need more money.
- Use tech to your advantage. It’s no secret that today’s kids are tech-savvy, so why not leverage that? You can find apps to help them manage their allowance, learn to invest and save, and establish smart spending habits.
Encouraging kids to develop smart money management habits will set them up for a lifetime of success. There is nothing more rewarding than the feeling of accomplishment and success. A child with confidence and sense of fulfillment will transition into adulthood easily.
