Regardless of our own financial situations, teaching kids about money is super important if we desire to bring up our children who can live a full and happy life. The saying that money can’t buy happiness carries some truth. However, we need to admit that our entire planet revolves around its exchange. What money does or does not buy us most definitely impacts our happiness.
The benefit of teaching kids about money
I believe that most of you guys know that there are many benefits to teach our kids about money, for us and them.
Before teaching our kids about money, we need to look back at the way we behave around money. If we usually spend without saving or pay little attention to what is coming in and out of our bank account, it’s not good. We will not be in a position to set a good example. Just remember that our children learn by watching us.
If we know and understand some basic information to pass over to our kids, it will be easier for us to look at the way we are managing money. As a result, we can work to improve that, providing a better example for our kids to follow. Therefore, we are more successful in teaching kids about money.
Like any other thing, our children learn their behavior by what goes around them. As a parent, we have a heavy impact on this. If we often give our kids positive messages about money, this will become their normal. Most of us are told certain things about money when growing up. For example,
As with anything, our kids learn their behavior by what goes on around them. As parents, we impact heavily on this. School, friends, family, and other environments they are open to will affect the way they learn about money too. For example, just imagine every day you are told that money doesn’t grow on trees or money is hard to come by. When we are kids, the messages we are given around money will shape our beliefs and behaviors around money. Those beliefs will go with us as we grow into adults.
How to teach kids about money?
I want to go into details of what is appropriate for kids to know and at what age. As always, there are some guidelines. Some kids are responsible and of course, there are some that need more guidance. Determine what works for you and then apply it to your situations. I read that basic money habits are often set by 7 years old and even as small as 3 years old can also grasp financial concepts. Here, I mean it’s never too early for you to start.
In case your kids are older, no problem, it’s never too late to learn. As an adult, sometimes, I still find difficulty when struggling with some of these concepts. That is one of the motivations for me to teach kids about money. I want to help my kids understand the importance of being financially savvy.
There are some specific things I want to let my kids know when teaching kids about money. They are:
- The difference between wants vs needs when spending money
- Money basics-denominations and value
- Learning how to account for the money
- How to save money
- How to budget
- Credit cards, credit reports
Guidelines for teaching kids about money by age
I’ve got here a table in which I synthesize all I do and will do in teaching kids about money. I divide the children into five main groups so that we can manage our teaching more easily. Let’s check it out.
Teaching kids about money is super important. Have you got our own plan to teach your children about this financial matter? If you find my guidelines helpful, please comment to let me know. Thanks so much for your attention!