When it comes to raising kids, parents have plenty of responsibilities. Teaching our little ones good money habits is one of those critical responsibilities that shouldn’t be ignored.
As we live in the world filled with money, materialistic desires, debts, and credit cards, many adults face financial crisis.
If you want a debt-free future for your children though, here’s a quick guide on 5 good money habits for kids.
Teach Your Kids Quality Money Habits [5 Steps]
1. Don’t give in when you shop together
Many parents buy candies or chocolate bars while standing in the grocery store’s line because they children want it. While those are cheaper than toys, don’t buy it. Tell your child that those candies are unhealthy and you can’t afford to spend your hard-earned cash on stuff that will ruin their teeth. Ignore tantrums and don’t give in.
If you do, you will teach them that there’s a reward for a tantrum or a bad behavior. When your child grows up, they’re more likely to have trouble building a career and overall manage their earning smartly. Prevent it by creating a shopping list and a budget for it. This way, your child will know that you have no extra cash for extra items.
2. Build a weekly/monthly family budget together
Get your child involved in creating your weekly or monthly family budget at no matter their age. Be sure you discuss your family earning with them and ask for their suggestions as if your child is over 4 years old. Children over 10 years old can even help you determine the main purchases of a week/month.
3. Practice gratitude (often)
Money can’t buy happiness. This must be a motto of each family. If you or your spouse is obsessed with material stuff and get depressed when you can’t buy something, you’re showing a bad example. Practice gratitude in your family. It’ important for kids to learn how to stay thankful for the things they have.
4. Create an emergency fund
One of the most important money lessons each parent should teach their kids is saving money. Even if you and your spouse already have an emergency fund, consider creating a new one for your child. Give some coins or cash each day/week so that they could place them in a jar or a piggy bank. If your child has pocket money, encourage them to save a little part of it for something they’ve wanted for a long while.
5. Know where money is going
This habit is crucial for kids over 7 who receive pocket money each day. Encourage your child to start a notebook where they will be writing their daily expenses. Not only will it help them see where their money is going, but will also help your child master great money management skills. If your child ends up spending all their pocket money without putting anything into an emergency jar, don’t judge them. Sometimes it’s okay to splurge, but let them not that it shouldn’t become a habit.
5 Good Money Habits for Kids Final Thoughts
Instilling these good money habits for kids should be a priority. Remember that they can still make some common financial mistakes, so allow them to make them. However, make sure you discuss each mistake in a calm or even fun way.
Do you agree with any of our tips? If so, we’d love to hear from you…
Drop us a line in the comment section below!