While some parents wait until their children are about to turn eighteen, with others never really having a conversation about it at all, there is a new wave of parents, especially among the millennial generation, who are prioritizing teaching their kids about money from as early as when they start counting in school. Studies have shown that this not only teaches them responsibility and makes them feel more trusted, but also equips them with a skill that helps give them a competitive advantage later in life. If you have children and would like to teach your children how to manage money in order to help them in later life, then read on.
When Should Parents Start Teaching About The Value Of Money?
Starting when your child is around six or seven is a great time to have the first conversation about where money comes from, savings and how important it is to make sure you don’t spend more money than your financial reserves. Some schools try and teach children the value of money by hosting bake sales and other types of events involving the youngsters in the creating and selling of food, but this is a minor point in their greater education, and in order to give them a broader overview, it requires you to do a bit of extra work with your children in your time at home.
Important Times For Financial Independence
Some parents prefer to give their children financial independence when they leave home, choosing the age of eighteen to help them to get a bank account and to learn more about credit, savings, and loans. However, this is also a process that can be accelerated in order to prevent your child from blindly applying for credit, and to prevent a habit of spending beyond their means. If you instill a core value of “don’t spend what you don’t have” in your children before puberty, they’ll take those values with them into adulthood, which can make all the difference to their futures.
The Value of Teaching Kids About Money
There is a tremendous amount of value in teaching children about money, giving them a “one-up” over some of their fellow classmates. Unfortunately, traditional schools do not include financial education as part of their curricula, mostly as a result of space and time constraints, but largely also due to generations prior who haven’t had a clear understanding of what sound financial management actually looks like. Too many people are “surprised” by the skills they learn in financial degrees at university, but for some in debt already it can be too little too late. Learning early is everything.
Quick Tips You Can Implement Right Now
If you’re ready to start teaching your kids the value of money, there are a few quick tips you can implement right away. Encourage their first savings by buying a piggy bank, or opening a savings account in their name. Have a discussion with them about the value of money, the purpose it serves and how they can possibly go about earning a few extra bucks to start putting away, encouraging them to understand that in order to afford things we want we also have to work for them. Encourage them to ask you any questions about credit cards, loans and interest rates, especially those related to buying property or cars. You’ll not only be encouraging an open dialogue between you and your child, but you will be equipping them with basic skills that will serve them for a lifetime.