Teaching children about money – what are the key lessons?
Teaching children the value of money is far more difficult in today’s cashless society, where ATM cards and credit card purchases are part of everyday life.
However, it is important to educate our children and encourage them to learn through action, so they can grow up with the necessary skills and experience to ensure their financial future is the best it can be.
We have a practical guide of the 7 valuable lessons that every parent can pass onto their children.
- Encourage children to set savings goals and help them to create a budget – so they know how to plan their spending.
- Open a savings account with Beyond Bank for your child – beginning the regular savings habit early is one of the keys to savings success. Remember – let them see their statements and check their balances.
- When giving children pocket money, give them the money in denominations that encourage saving. Remember – If the amount is $5, then give them five $1 coins and encourage that a portion be set aside in savings.
- Alert your children to the dangers of borrowing and paying interest, especially expensive debt like credit cards.
- If your child wants a particular item, encourage them to work with you to set aside weekly saving to make the purchase.
- Give them opportunities to earn extra money – extra jobs around the house for you or a trusted neighbours is a great idea..
- Don’t bail out your kids – if your children get into financial trouble, the worst thing you can do is bail them out. Help and support them to develop and stick to a plan to sort out the problem.
Remember: Financial Literacy is a lifelong skill best started when our kids are young.
Got any questions? Leave a comment below!