Do you have kids? Are they handling money? Well, money is a sensitive issue. They say if you don’t teach your kids about money somebody will do for you. Do you want that? Definitely, that a risk that no one would want it to happen to their children. There are many ways to show your child about money. To start with, kids just need a head start in concern to money matters. How to teach preschoolers and teenagers about money should be a norm in your household.
Every parent needs to train their children the proper manners of handling and saving some money. You know why? Because we trust you got proper skills and knowledge about financial management! Thus, you are their master. It’s quite a challenge for them. They need guidance. Simple as that! Different tactics on how to teach preschoolers, middle scholars and teenagers about money on different development stages of your kids.
How to teach Preschoolers and kindergarten about Money
1. Clear jar saving trick
You have seen in movies and shows, right? How to teach preschoolers and teenagers about money Well, that Piggybank or jar really works. Great idea! Piggy bank doesn’t give someone a clear vision of its content. As in comparison to a clear jar for saving, where one can literally see their money grow. Children usually need to see things happening with their own eyes. Yesterday they put a five-dollar bill in the jar. Today they have a five-dollar statement and a quarter in the pot. It makes them happy and aids motivation. Talk to the little one about this journey. Make it one hell of a deal. They will take it seriously.
2. Setting an example
A lot of studies and research showcases at the age of 7 years; children tend to form money habits. The little eyes in the house are watching you as the couple. If you have the habit of slapping down the plastic bag every time you go for dinner or the malls, they will quickly notice it. If you, as the couple is arguing and throwing words to each other, the preschooler will see both of you. Children tend to follow your habit and grow with them. You are their moral, ethical leader. They watch over you by your behaviors and movements. You are their pillar!
3. Show them things that cost money
Preschoolers grow by actions. Well, unfortunately, words will put in much impact as actions. This means that you have to be extra not just by lecturing that small boy or girl. For instance, you see that tantalizing toy on the toy-store shelves’? The one that your kid is much envious of it? Make them understand that it will cost you money and on that note. Let the child go to their saving jar, grab the money, and takes to the store. Let the boy give it to the cashier. By doing this, always hint on the fact that it costs money and were it not for their savings. You all could not have afforded it. This action may seem to be funny, but it has a deep impact.
How to teach Elementary and middle schoolers about money
1. Opportunity cost
Well, this age, they tend to know more about money. They have a clear copy of what it means when it comes to money. With this age, you tend to showcase opportunity costs. You are wondering what it means? Well, let’s put it out this way, you tell your kid, “they will not have the pair of shoes if you buy the video game.” One thing at the time. The child needs to choose between the two. At this juncture, the child needs to make their own decisions and understand carefully of every outcome.
2. Give commissions, avoid allowances
Tend not to give out money to your children just because they have asked for it. Let them earn some commissions from little home assignments accorded to them. For instance, you can award some cash to whoever will empty the trash bin. The one who will clean their bedrooms, or mow the grass in the backyard. Well, children need to understand the fact that money is only earned and not just by being given whenever they want it. For more of such information, you can purchase this book written by Dave Ramsey “Smart Money Smart Kids”. The book will provide a broader concept to your children.
Children will tend to have impulse buying of things. “Dad, I just found this cool skateboard. It awesome. Can I have it please?” does this statement hits you? This age group knows very well how the impulse buying of things does. Especially when you had not planned for it either. Yes, you, the mother or the father. Instead of being so quick to pursue your wallets to get them some money. Let your kid know how to buy what they envy with their hard-earned commission. However, you need to train them the trick of shopping things within their saving limits.
4. Stress on the importance of giving
Giving is a virtue you learn about. Always teach your kids about the goodness of giving. Show them the moderate ways of sharing what they have. Sharing is caring. On this, they can pick a platform of their own interest. This can range from a charity, church, home orphanage, or someone who needs help. Eventually, this virtue will open their eyes. They will see how giving does not affect the receivers but them themselves.
How to teach Teenagers about Money
1. Contentment teaching
Well, most teens spend much time on the internet and social media. Every minute they scroll through social media, they see their friend’s lifestyle, celebrities, family, or even strangers. It gives them a comparison trap. Children may come up with things like:
“Dad, Terry’s parents bought him a new mustang! How come I have to drive this old one?”
Basically, contentment usually starts within our heart. You need to convince your child that his old mustang is still in good condition and can operate as good as new one.
2. Bank responsibility
Is your teenager responsible? Are you sure your child is responsible for any action taken? Well, for teenagers, it is another level. They need to be accountable. You should give your teenager the responsibility to have a small personal account. An own bank will aid the teenager to take money matters into another level. Teenagers are supposed to have trust. You know why? Well, they need to have prepared for the future.
3. Dangers of credit cards
Teenagers need to have learnt credit cards. You know why? As soon as they turn 18 years old, they will have haunted by credit card offers from different institutions. If you didn’t have a sit with your child on the dangers of credit well bad luck for you. The credit card web will trap them. They should know the risks of debts and credit cards.
Having children is one of the best things a couple can have. But again, they come with a lot of commitment and responsibilities. At each step, children learn different things. So make sure you teach your child everything. Mostly money matters!