As your kids grow up, their understanding of the world around them is often based on what you teach them. For this very reason, it is essential that you take steps to ensure that they understand the importance of money, and how it can affect their lives. If you’re looking to give your kids a head start on all things finance, here are 4 important lessons to teach them about money.
Learning About Income
Pocket money is a great way to introduce your kids to the idea of income. Every family is different, but the basis of pocket money is that you give your kids a small weekly allowance in exchange for them completing a few set jobs around the house. Whether it is finishing their homework, maintaining a tidy room or helping out with dinner, you can customise your system to reflect your family values. The important moral of the lesson for your kids is that they begin to understand and appreciate that money needs to be earned, and is a benefit of doing their work.
The Value of Money
Many children grow up without truly understanding the value of money. Now that your kids have their own allowance, you can help them to realise what their money means. Ask them what they would like to save for, and spend some time talking about how many weeks pocket money it would take for them to have enough money ready. This will help your kids to connect the work they do with the money they receive, and in turn what they can use it for. All of this will coalesce into a better understanding of the value of money.
The Importance of Saving
Once your kids begin to grasp the concept of getting pocket money and using it to buy the things they want, you can introduce the importance of saving. Spend some time explaining the way that saving helps you to achieve the really big things that you want, as well as making life easier in the future. By putting even a little bit of their pocket money aside every week, they will be learning essential savings habits for later in life.
Using the Bank
It’s a great idea to set up a bank account for your kids, and show them how the system works. Bring them with you whenever you are making a transaction, and get them to help with the withdrawal and deposit slips. By physically being involved in the banking process, your kids will gain valuable skills on how to manage their finances.
Addressing Your Own Financial Stress
It’s hard to be a good role model when you’re struggling with your own finances. Fortunately, there is a great range of quality financial advice available for when you need it the most. Choosing a reputable provider is the key to success, and a firm such as Fox Symes is recognised as being one of the leading debt solutions specialists in the country. From budgeting advice to debt assistance, the team will work with you to find the best strategy for your financial needs.
Teaching your kids about money is an essential aspect of their growth, and these important lessons should provide a framework of knowledge for them to build upon as they mature. Remember to contact the FSA Group for a free and confidential discussion if you want to get back in control of your finances for good. By setting a good example and being a great role model for your kids, you are giving them the best possible chance of having a bright financial future.