The importance of teaching your child about finances
As an adult, finances are apart of daily life, however, most of us were not taught much about this topic in school. Talking money with your children starting at a young age can help them better understand the value of the dollar, how to save and spend responsibly, and can help shape their ability to manage their finances later in life.
How can I teach my children about money?
Allowance is a topic that many agree with and many do not. Regardless, giving your child an allowance based on age appropriate chores and tasks given to them can teach them the value of hard work. If you don’t agree with giving your child an allowance, help your children come up with plans to raise money. For example, help them sell their crafts or pet sit and allow this money to be used as savings.
Once they have a little money saved, explain the differences between wants and needs. Tell them about how if they save their earned money, they can buy the toy they’ve been wanting at the store. On our website we have created a WCU Kid’s Corner page – there you will find an activity book that have a budget tracker perfect for children to track their savings and reach their goal!
We also have a piggy bank craft so your child can create a place to put their saved money. This is also a great way to start the conversation about money, saving, and spending!
Let them handle the money, this will teach them that if they decide to take $2.50 out of their savings to get candy, it will take them longer to reach their savings goal.
Don’t forget to celebrate when they accomplish their goal – make it a big deal because it is a big deal!
Be a good example for your child
As with most things, your child looks to you as an example. It’s important for you to understand your own finances and set goals for your savings and spending too. The more you educate yourself, the better you can teach your children.
Please take a look at our “Kid’s Corner” located on our website for some activities that will help your child learn and tools you can use to help teach your children about money! Teaching your children these things at a young age, in a fun and entertaining way can help them with their future habits and and knowledge of money!