They understand the stress the lack of cash creates and their #1 question is “How do I get, have and earn more money and not repeat history”
Most parents struggle with teaching kids about money because they feel – how can I teach something I was never taught?
There are plenty of tools out there to help educate your children in how to become money savvy. Start with being honest and admit, it wasn’t a lesson you learned, but in today’s complex financial world it’s top priority.
Surveys show less then half of teens know how to handle it, only a quarter know how credit cards work, and even less understand the power of investing.
If your goal is to raise financially responsible adults then practicing these simple lessons below will change the financial direction for you and your kids!
1. Having the “Money Talk” Is Just Having an Open Dialog With Your Kids About Money
There are opportunities daily that you can expand upon, but remember to stay positive and never talk negatively about money. Play games that involve money. As your kids get older incorporate activities that teach money skills.
(Check out these fun Money Games for Kids)
Younger kids can start to do money recognition games, and teens can play more challenging games like Monopoly and just let the conversation flow.
Money is a life long skill and is learned daily with our actions, our words and our attitudes.
2. Creating Good Habits Instead of Bad Ensures Secure Financial Futures
Imagine your child receives a dollar and spends a dollar at 5, 10, 15 & 20 years old.
They have just graduated into a life of stress, living paycheck to paycheck and probably living in debt.
Teach children from an early age to practice the 10/10/10/70 concept.
For every dollar you receive save 10¢ for giving, save 10¢ for investing, save 10¢ for savings and 70¢ for spending wisely.
This will automatically teach children how to pay themselves first, give to others and live within their means.
3. Stop giving an Allowance! Make’m Earn It!
Kids may be too young to get a job but they are never too young to earn an income.
If they can create the habit of managing their earned income at home, when they leave the nest you know they will be able to manage it out on their own.
(check out our free A+Allowance App)
4. Spending Lessons – Let’m Make Money Mistakes
It’s best to make mistakes with $20 -$50 dollar items now then $20,000 items later. We learn at a deeper level when we exsperience them first hand.
5. Stop the Save/Spend Mentality
Don’t allow the Save/Spend mentality. Saving to buy a toy or game later is really just prolonging your spending.
If your child does not have enough to buy an item, explain they must save some of their spending money for the item they want to purchase.
Then explain they also have a savings account that is for emergencies in the future. Which will be there for them down the road in case they need it.