The financial situation in the country is scary. A lot of people can’t afford any unexpected bills at all, even if they’re only for a few hundred dollars. I’m sure you don’t want your kids to find themselves in the same predicament.
It’s why you must teach them to save like responsible adults. If not, they could end up falling down a slippery slope. You must do everything in your power to stop it from happening. We’re going to discuss a few tactics you can use now.
1. Young Kids Should Have A Piggy Bank
If your kids are young you can start off with a piggy bank. Not only will they be saving money, but they’ll find it enjoyable too. Teach them they can afford nice things once their piggy bank is full.
For example, let’s say you’re going to Los Angeles on vacation. Your kids will only be able to afford the trip if the pigs are full. Once they come back they’ll appreciate the value of money a little more.
2. Don’t Throw Away Your Glass Jars
The day will come when your kids are too old for piggy banks, so they’ll have to use glass jars instead. At the moment, it’s fair to say they probably want to save up for a couple of different things.
Put a label on the front of each jar and they’ll be able to see the money slowly build up. Every time they want to buy something bring out a new jar. They will learn you should save for treats instead of using credit.
3. Teach Kids About Compound Interest
You’re usually sitting in math class when you learn about compound interest. It’s hard to close your mouth for a few minutes once you see the numbers, but children shouldn’t be learning about it in school.
Every parent should teach their child about compound interest at an early age until it’s ingrained in their minds. When you learn about it in math it’s about numbers, but at home it’s directly related to money.
4. You Need To Start Leading By Example
If your kids realize you’re not smart when it comes to money it’s going to affect them negatively. I don’t think parents appreciate how much their bad habits rub off on their children over the years.
Maybe you’re not good with money right now, which could be a good thing. You’ll need to get better at it for the sake of your children. If you need to spend recklessly it would be wise to do it when they’re not looking.
5. Give Them Financial Books To Read
I don’t expect you to read financial books to kids when they’re still young enough to learn about dragons and fairies, but they will be old enough at some point. Even if you need to read the books with them make sure they do it.
You can try downloading audio books and put them on when your child is in the car. The fact you want to teach your kids about their finances is excellent, but they’ll need to learn from professionals too.
It’s Something You Can’t Ignore
Nobody knows what the future is going to look like, but those with the most money will be safer. Your children won’t stand a chance if they don’t know how to save. It’s something you must teach them as early as possible.