It remains our responsibility to teach our children financial values and financial responsibility from an early age. Children form their habits based on what we expose them to and they learn by example. First off, set good financial examples for your children to follow. They learn by watching, they watch how you spend, they watch if you invest, they see all these things. It is not too early to teach your child financial responsibility. You can start from the age of 3 years and you can do that in very simple and basic steps.
Teach them the concept of money.
You can start by explaining what money is when they ask for a new toy or a candy, you tell them, give me a minute let me check if you have money to afford that item. Let them understand you go to work or run a business to earn money. You could go grocery shopping with them and show them how you buy things and how you pay for them.
Teach them delayed gratification:
We live in a world of instant gratification. Whatever we want, we want it now. So teach them you can’t have that, for example, you can choose to eat all your candy now, or you can save some for the rest of the day. You don’t spend all your money at once you have to budget and save.
Teach and encourage them to save:
You can start with a piggy bank and when that gets full you take them to the bank and walk them through the process of opening an account. Teach them to save a certain part of their allowance or any money given to them. You can award points or give treats to the highest or best saver to keep encouraging them to save more. You can give them projects to save towards, it could be that toy they always wanted or even to contribute to a part of their summer vacation. You would be surprised how excited the kids would be once they achieve their saving goals.
Teach them to budget:
Learning to live within one’s means is an important life lesson. Let them know the importance of budgeting, give them an allowance and go over their needs and wants, what they are saving towards, what they intend to purchase. Go to the grocery store with them and show them how you shop, based on value for money, quality and prices. With the big advertising, huge influencer marketing these days in addition to peer pressure, children are often pushed into impulse buying and you need to guide them to make the best decisions always.
Teach them to give to charity
Involve them in charitable giving as early as possible, they can learn to give their old toys, outgrown clothes and a part of their allowance to any chosen charity or to the less privileged they come across and as they grow older, they can volunteer their time also. This would show them that there are other people less fortunate than they are and they won’t take a lot of the privileges for granted. In the long run, it also creates a better society where everyone looks out for each other.
Have you started teaching your kids financial responsibility? How did you start? Do they own piggy banks? Please let me know your opinion in the comment section and also if you have any extra tips please share.