How to Teach Your Kids to Spend and Save Responsibly

From day one, pretty much, I've tried to teach my kids to be money wise and responsible spenders, and I'd say it's pretty much been successful, though obviously the older ones have it more down pat than the younger ones. Here are some ideas from a reader on how you can help your children with this.

Raising a family is as rewarding as it is challenging, especially when it comes to dealing with money. As a parent, you want your children to feel safe and supported, including teaching them life lessons that they will be able to take with them as they grow and become more independent.

When it comes to money, it’s never too early to teach your kids about the benefits of making wise financial decisions, saving solutions, and to learn about other options. When you have a complete understanding of money, you have the tools you need to live a stable life. Teaching your kids these ideals will undoubtedly help them later in life.

Every day is an opportunity to teach valuable life lessons to your kids, and money habits are a great place to start.

Follow our tips and tricks for teaching your kids how to spend and save responsibly.

Lead By Example

In every significant area of their lives, it’s essential for parents to be positive role models and lead by example. This is crucial when you’re dealing with finances. If your children can understand how you spend your money, they will likely pick up on your behaviours and attitudes towards money.

Even if your day-to-day is busy, you can still use tools like budget apps to show your kids that you’re committed to keeping an eye on your finances no matter how hectic your day might be. Plus, this is a beneficial way to incorporate technology constructively.

If you’re using a debit or credit card, it may be helpful to explain to them — provided they’re old enough to comprehend — that you’re only using that card to build your credit, and you intend to pay the balance right away.

Make Finances Fun

Money doesn’t have to be a taboo subject in your household. In fact, there are several ways to make it a fun topic to talk about with your kids. Kids often learn best by participating, so why not turn money talks into a fun game?

An easy game to play at home is by setting up a small “shop” that involves using paper money and coins. You can use this type of game to teach simple math skills and the importance of buying things that are truly worth their price.

Turn Savings Into Opportunities to Dream

We know how important savings are to any household, but it’s also a great way to teach your kids how to think of the future. You can turn this into an opportunity for them to dream about a vacation they would want to take or something for the family home that is more expensive.

Not only does this teach them to save, but it also teaches them patience. They learn that some things are worth waiting for. To add another element of fun to the experience, you could decorate a mason jar and withdraw money from the bank every month that they can add to the jar — helping them to feel like a part of the process.

For those of you who are parents, what do you do to help teach your children to be money smart?

Penniless Parenting

Mommy, wife, writer, baker, chef, crafter, sewer, teacher, babysitter, cleaning lady, penny pincher, frugal gal

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