7 Tips For Teaching Your Kids About Money | Refresh Financial

7 Tips For Teaching Your Kids About Money

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Most of us have wished at one time or another that we’d been taught more about financial responsibility in our youth. It’s a common complaint about curriculums all over the world: they don’t include money education, at least no sufficient money education. Some of our parents tried to fill in what the school system left out, but most of us were left to navigate the confusing and stressful world of money on our own.

As easy as it is to blame the education system, the truth is that educating kids about money should start at home. Moms and Dads, it’s your responsibility to make sure they’re leaving home with the tools and knowledge to be smart with their money. So in light of that, here are seven tips for how to do just that:

1. Start early. Teaching your son or daughter basic money concepts like the value of each currency denomination, what bills are and what a price is, just like you teach them what a cow says, will give them a good solid base of money knowledge. It will also make future conversations about money easier, because they’ll already understand most of the terms you’re using.

2. Give your kids an allowance. Let them buy the things they want, rather than just buying it for them. There are a lot of lessons to be had when managing your own money, even if it’s just a little bit. What happens when it runs out? Did you choose the right way to spend your money? How much can you save up? The lessons are endless.

3. Allow your kids to earn more money by doing chores. You shouldn’t include their everyday responsibilities in these chores, like keeping their room clean or clearing their dinner plate. Rather, give them a loonie or a toonie for doing things that mom or dad would normally do. This teaches them that hard work pays off.

4. Encourage your kids to set savings goals. If you’re going on a trip sometime in the future, tell them they will have to have their own spending money so they should start saving. If they ask you for something expensive, encourage them to save for it rather than just buying it for them.

5. Encourage negotiation. Get them used to talking about their allowance, how much it is and why it’s that much. Ask them if they agree to show that you’re willing to consider differing opinions. Explain to them that as long as they come to the table with a good argument that makes sense, you’d be willing to change their allowance or the payment they would receive for doing extra chores.

6. Teach the art of the deal. If the item your son or daughter wants is something well out of their financial reach, make a deal with them. Tell them that if they save up half, you’ll match that to buy it.

7. Hand over the household budget to them for a week every so often. When your kids are nearing their teens, and with supervision, give him or her the basics: what you’re bringing in, what is going out, and what you need in the way of groceries, gas, entertainment, etc. let them plan what will be spent and where, and then get them to help you execute it. Take them grocery shopping, and make sure they’re paying attention to the budget. Show them the bills as they come in, and have them present when you pay them. Assess at the end of the week or month how well the budget was adhered to, and what can be done better next time.

If you’re consistent with all of these things, your kids are going to start to develop good habits that will be hard to shake in their adulthood. So, don’t wait for the Provincial curriculum to match your money education expectations. You can fill that void now.

What do you do with your kids to teach them about money? Let us know in the comments!

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