You teach your children how to handle money, even if you don’t have such a goal. Your example and experience will influence financial behavior for your son or daughter. And if your children see you spending crazy sums on unnecessary things, they will begin to repeat your behavior. And if you set aside a small part of your budget for things you love, like the best online casino or XBOX games, they’ll understand that it’s essential to please themselves, but there’s no need to spend a fortune on such things. Let’s look at how to teach your child to manage their money.
Don’t Pay for Grades and Chores
It is fashionable, but ineffective, to practice paying your child for straight A’s, washing the dishes, and making the bed. The situation with money in the family can change, and then you get a teenager who won’t perform household chores for free.
You should encourage the child’s efforts, but not daily. It’s better to buy gifts several times a year, travel, pay for courses and workshops. Sometimes sincere praise and pride in your eyes is enough, which is more expensive than money.
Teach Your Kids Responsibility
Model situations when you give them pocket money or give them larger sums on some occasions. No one is encouraging you to raise a miser by telling your child not to spend the money. Your task is to outline the prospects of how differently your kid can use this sum. He can spend it on ice cream or set aside to save up for a smartwatch he’s wanted for a while. Whatever choice your child makes, never express negativity, even if there is a reason. Explain that you will give extra pocket money only after a month. It is their choice and their responsibility, and money is always limited.
Offer to Compare Prices
First, tell your child you will buy him his favorite juice, but first, find out which of the nearby grocery stores has the cheaper juice. You can tell your teens to do this task on their own. Asking for sneakers? Ask to compare their price in the mall with the price in online stores. Explain to the child that the point of such a comparison is not to save for the sake of saving, but that the saved money will help pay for some other needs.
5 Financial Literacy Books for Kids
To make learning even more effective, suggest that your child read one of these books:
- Noddy Goes to Toyland. Hurrah for Little Noddy. It’s a story about the life of a wooden boy named Noddy in Toyland. The adventures of the main character help your kid learn about the structure of the adult world and understand the role of money in society. The cartoon based on the book complements the story perfectly.
- Raising Financially Fit Kids. How to find the line between saving and being stingy? How to determine the value of a purchase? These and other questions are dealt with in this parenting guide by Joline Godfrey. The author discusses the top ten skills for handling money and advises on developing financial literacy for your child at different ages.
- Growing Money. A Complete Investing Guide for Kids. The book teaches the basic concepts and methods of investing. It will be an indispensable helper for anyone interested in financial growth. Although it is written in simple language, it is better to study the information together with parents.
- A Gift to My Children: A Father’s Lessons For Life And Investing. Tips for parents from a man who raised two daughters, taught basic economic planning, and made millions through his work. It’s a personal story, where the author uses various events from his own life to teach how to analyze a situation from different angles and decide based on his own opinion.
- My Money. Spending Power. The authors examine the principles of modern trade and everything connected with it: pricing, import and export, customs support, and, of course, the reasonableness of purchases. For example, one of the topics is shopping while traveling. There is also a list of websites where your kid can get useful information.