Teach your kids how to manage money to avoid the risk of someone else doing it.
Here are ways to educate your kids about money;
1. Place them on a simple budget
Since your kids are glued to their mobile device, get them active on a simple budgeting app. Now is the time to get your teen in the habit of budgeting their income—no matter how small It is. They would learn the importance of making a plan for their money while they’re still very young.
2. Show them opportunity cost
This is just another way of saying, “If you buy this video game, then you won’t have the money to buy that pair of shoes.” At this age, your kids should be able to weigh decisions and understand the possible outcomes.
3. Give them commissions not allowances
Don’t just give your kids money for breathing. Pay them commissions based on chores they do around the house like taking out the trash, cleaning their room, or mowing the grass. This concept helps your kids understand that money is earned. It’s not just about giving to them.
4. Stress the importance of giving
Once they start making some money, be sure you teach them about giving. They can pick a church, charity or even someone they know who needs a little help. Eventually, they’ll see how giving doesn’t just affect the people they give to, but the giver as well.
5. Get them saving for college
There’s no time like the present, to have your child to start saving for college. Do they plan on working a summer job? Perfect! Take a portion of that (or more) and toss it in a college savings account. Your child will feel like they have skin in the game as they contribute toward their education.
6. Use a clear jar to save
The piggy bank is a great idea, but it doesn’t give kids a visual. When you use a clear jar, they see the money growing. Yesterday, they had a dollar bill and five dimes. Today, they have a dollar bill, five dimes, and a quarter! Talk through this with them and make a big deal about it growing..
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