People usually say that kids are small, they don’t know anything so just putting on hold to teach them some macro things in the world, just like teaching them on how to spend and save money. If you have that silly mindset and you don’t teach your kids on how to manage money, somebody else will. And I believe that you don’t want to take that risk and turn your kids into another worse version, right?
That is a principle reason why the article today is going to show you on how to give your kids the head start you wish and set them up to win with money, spend it wisely and safely at any age.
Kindergartners
Children at this age may not even know what the money is and how they have everything around them which all come from money. However, it does not mean that you ignore teaching them all about money. They are small but wisely know everything through your actions and how you behave to each other. If you don’t teach them how you can earn money, spend them from the minor to the major thing and how hard you can have the savings every month. Your kids will easily throw money out of the window when they start growing. There are a few simple ways to guide them at this small age:
- Tell them why we have things around us
Through your items and actions everyday, gradually tell them why we have it. People do not present us all items in the house, items are not available to be in front of our eyes to use it for free, we have to do the hard jobs every day to buy it. Some examples you can tell with your children such as mom has to go to work to have money for your milk; dad does not have enough money to buy toys for you; something that we have to spend our effort to buy for the kids. Gradually when you share with your kids, their brain will have the reflection and awareness about money.
- Use a clear container to store money/coin
If you just tell your kids things about money by your mouth without the visual pictures/ actions, there is not a practice at all. Start teaching them by saving money through a clear container which can be a clear jar or a clear pig shape. It will show them on the increase of money, you have to do the great hard things to store a bigger amount of money/coin. Money is not gained easily.
Primary school and secondary school
At these ages, I believe that they have a big awareness on how their parents make and spend money. They are sensitive guys also, so let’s be careful to apply teaching methods.
- Do not easily give them money
Don’t just give your kids money for spending freely although you have good finance conditions. Pay them commissions based on chores they do around the house like taking out the trash, cleaning their room, mowing the grass or helping you cook/ preparing meals. At these ages, they also need to learn doing chores and helping their parents on things surrounding us. Thus, appreciating them by presenting a little money is also a big motivation for them to understand how hard it is to make money.
- Show them opportunity cost
Showing them opportunity costs whenever they want to buy something is also a way for them to learn and weigh their decisions. That’s just another way of saying, “If you buy this video game, then you won’t have the money to buy your new T-shirt this quarter.” They have their choices which teach them which is good, necessary or not? Life does not give them all things they like.
- Avoid luxury unnecessary items
At these ages, they need to be taught how hard the money is made and learn savings. They can wear normal stuff or a cute dress but the luxury outfit is not essential. Avoiding luxury items at their small ages is also a great way to be a mature adult.
- Teach them either making and giving money
Not only teaching them how to spend and save money but showing them how the money gives is. Give money for people who are not lucky than us, donate money or do charitable works at the churches, temples and the community. Eventually, they’ll see how giving doesn’t just affect the people they give to, but the giver as well.
High school/ teenagers
Students or teenagers at these ages can even make money better than adults. So, start teaching them on how to make and spend money wisely and safely is our critical responsibility.
- Get them on a simple budget
Since your teen starts getting familiar with technical devices, especially the mobile device, let’s get them active on some simple budgeting apps to help them calculate and work on their plan. Now is the time to get your teen in the habit of budgeting their income—no matter how small It is. They should learn the importance of making a plan for their money while they’re still under your roof. If you have not started this way as soon as you can, your teens may be lost somewhere by themselves or even strangers.
- Help them figure out how to make money
They are on the way to be adults, motivate them to be active persons and create meaningful things for the community. They can start doing some small things to understand the value of money such as the waitress in the restaurant, the cashier in the store or the supermarket or the tutors. These jobs can assist your school fee or even help parents to ease their burden. If they don’t know how to find jobs, let’s direct and guide them. Money is not available if you put your hard effort into making it.
- Give them the responsibility of a bank account
It depends on the maturity of each teen by your evaluation to set time and give them the responsibility of managing their own bank account. This milestone takes money management to the next level, and will prepare them a better mindset for managing a much heftier account when they get older. Check their bank account regularly to see how well their management is, then you can intervene right away to help them out.
- Teach them the danger of credit cards, loans and debts
As soon as your children turn 18, they’ll get hounded by credit card offers and it’s time for them to meet debts and other bad things (if they don’t know how to manage it well). Credit cards, loans debts are not the bad things if they actually understand how it works and operates. The worst thing is the lackness of knowledge and experiences that are instructed by their parents. They start joining their college, if you haven’t taught them how to deal with those definitions, they’ll become yet another credit card and debt victim.
- Teach them to get savings for college period
Your teens may get excited when they start joining the college. It means that they can start being in charge of their life, making their own money and solving other big issues. And it’s time for them to practice with savings although their profit is not really big, it does not matter. When they start practicing to get savings from the small pocket, they will do a great job with the bigger amount. Do they plan on working a summer job? Amazing! Take a portion of that (or more) and throw it in a college savings account. Your teen will feel like they have skin in the game as they contribute toward their education.