It seems like kids today are learning more and more about life through society than through family. With the digital era, it seems like any pertinent information to living in the modern world can be found through some source of media. But just because this is the case, does that mean someone else could and should teach your kids about money? Let’s ask five basic questions about providing financial advice for kids:
Who?
YOU! Who is more qualified and more personally invested in this issue to do it besides you? Financial advice for kids should be another milestone learning experience that is to be expected as they grow up.
What?
You want, first and foremost, to pass along as much credit advice as you can when teaching kids about money. Having your children make smart credit choices from a young age will give them the best chances later in life to get the most affordable deals available for their first home or car.
Money advice goes hand-in-hand with credit advice. Whether they choose to pay with bills or plastic, the same logic of being a smart spender apply. No matter what form of tender, money spends the same and you want your kids to be a conscientious spender.
When?
As soon as possible! You can start teaching your children as early as 2 and 3 about being smart with money and thinking about the value in things. A piggy bank might sound stereotypical, but this is a fantastic method to start getting kids to be thinking that this thing called money can be saved, and the results of saving are fun. Forbes suggests that you can create three jars, or piggy banks, for “saving”, “spending”, and “sharing” for kids between three and five. This is not only teaching kids about money and how to save in general, but that savings can be taken a step further and separated by specific need. This is a life skill that’s important to learn at any age, so starting sooner is better!
Why?
As parents, you are trying to instill lifelong good habits in your children. You want them to eat healthy, work hard, make smart decisions, so why would teaching kids about money be any different?
You are your children’s mentors, and your credit advice and money advice to them are just as important as teaching them to eat vegetables on a regular basis.
How?
Incorporating your children in routine activities that require a budget-conscious mind, like the family grocery shopping, is a great way to get kids to start thinking about looking for the best deals and avoiding impulse buys. You can have them seek out the items that are mentioned in coupons that you brought, or compare various brands of the same type of item and having them pick the best deal. Over time, this will become instilled as a habit and lay some groundwork for teaching kids about money.
