There are few things more important in life than good money skills. The ability to properly take care of your money is something that will be worthwhile your entire life. Never having to worry about having enough money is something everyone should strive to achieve. Since money skills are so important, it is vital to teach your kids as early as possible. These are the three best ways to teach your kids about money.
Lead By Example
Kids subtly learn things as they grow up by watching their parents. They then mimic this behavior as they get older. If your kids see you frivolously spending money all of the time, then that is what they will do when they are older. Show them the importance of saving as early and often as you can. You also need to let them know the opportunity costs of buying something that is not needed. It may feel good to buy that new pair of shoes, but it is not a smart decision if it wipes out most of your savings. Setting a good example will go a long way in your kid’s financial life.
Pay Them for Chores
Far too many parents give their kids a weekly allowance for absolutely no reason. This sets a bad example at an early age. If your kid wants a little extra money in their pocket, then make them earn it by doing some chores around the house. Pay them a flat rate every time they cut the grass, clean the dishes or clean their room. This will let them see that money is only earned through hard work. That last thing you want to happen is to have your kids become entitled and think everything should be given to them.
Get Them a Bank Account
Once your teenager has a little money saved up from the skills you taught them, it is time to get them their own bank account. This will allow them to track their spending and save a lot easier than with a pile of cash at the house. This will also give them the opportunity to learn the basics of banking at an early age, which will only set them up for success in the future.
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