How to teach children money habits ?
Financial literacy is necessary for everyone, so it is important to pass it on to our children from a young age. Building good financial habits early on will give them many benefits in the future. Today, we’re going to introduce you to the top 5 money-related principles that are great to teach your children.
- You are their role model
From a very young age, children follow their parents, observe them and copy their actions. They also notice their parents’ money habits and absorb them. The smallest things make an impression on them. Therefore, you as an adult should pay attention to your financial choices and eliminate any mistakes that may develop into a pattern for your child. For example, follow a budget, eat food from home instead of buying unhealthy meals or spending more money at restaurants. The principle here is to teach children the value of money and how to appreciate it.
- Teach them to wait to buy the things they want
Nowadays, it’s getting easier to satisfy our every whim and we risk becoming consumers. The desire to get what we want immediately leaves us no time to find out if we really need it. Children need to understand that they cannot get every toy without a reason. Give it to them for Christmas or their birthday, for example. Or teach them to work for what they want. For example with little household chores. This way they will learn discipline from a young age and won’t spend indiscriminately because they will rely on their own funds.
- Show them how to save
Don’t just tell them to do it. Better set them savings goals so they have something to aim for. For instance, if your kids really want a certain toy, help them make a plan to save out of their pocket money. How and what amount to set aside each week until they have the money and can buy it themselves. That way, in the end, they’ll be more excited about the toy they’ve waited a little longer for but have earned. The older children get, the bigger savings goals they can set for themselves.
- Teach them to compare prices against quality, quantity and features
You can take them shopping with you and show them how to compare products. Show them two food items of the same type and explain why the price is different, what is the material, quality, brand, etc. Then let them help you choose which one to buy. By forming this habit now, children will apply it automatically as they grow older.
- Give them the opportunity to make mistakes
If you see that your child has saved a sum of money that they want to spend on something they won’t appreciate later, you can let them buy it anyway. First of all, this way, they will know that they have the right to make their own choices, especially with the money that they have saved. Second, they will learn to value their savings and put more thought into their purchases. This valuable habit is sometimes difficult for adults too, so it’s important to pass it on to your children from an early age.