With an ever growing problem of debt in this country, it is vital for us as parents to break this vicious cycle. We need to take the time to teach our children just how important money is and how they need to use it. If you want your children to be financially independent as adults, then there are vital lessons they should learn growing up. Here are some tips in how to teach kids the importance of money.
Introduce money at a young age- As soon as a child can count, then they should be introduced to money. It may be as easy as just telling them what money is and what we do with it. Answer any questions they may have about money. Children definitely learn by observation and repetition. These are great ways for your children to grasp anything you are teaching them.
Talk about money- Every time money is involved, you have a great opportunity to teach your children the values of money and how to use it. Don’t overwhelm them by always talking about money, but make sure that you portray the importance of it and teach them the wisdom that you have learned throughout the years so they will less likely make your mistakes. Every time you purchase something at the store, invest, or donate, this can be an opportune time to teach your children something about your values.
Communicate-Communicate with children about your values concerning money. Help them learn the differences between needs, wants, and wishes. If you can teach these crucial lessons, then this will prepare them for making good spending decisions in the future.
Set goals-Setting goals is essential to learning the value of money and saving. Most people rarely reach goals they haven’t set. For every toy or other item that your child may ask for can become a perfect time for a goal-setting session. Goal-setting helps children learn to become responsible for themselves.