I began talking to my children about finance long before they were what five or six years old!
A lot of friends, relatives, and acquaintances back then told me that it was a bit too early and that it would not really help them since they were young to understand the nuances of finance but I persevered. For me, being a parent entailed this responsibility that from early on in their lives they have a clear idea of how money should work for them rather than they work for the money.
Also, I wanted them to not become burdened with debts and this was the only way to tell them to be free of any liabilities in their lives.
So, here are the eight things that I began by teaching them:
- Drawing up the household budget meant that the children were most definitely involved. They either heard what their parents decided after discussion or they were allowed to make inputs.
- Use the time creatively to explain to them that they must never outstretch their budget. Drawing up a clear budget means that they know exactly beforehand how much they have and how much they need to spend and save.
- Teach them to buy things that will double up in value and worth. One of the exercises was to buy toys for them only from https://www.starwalkkids.com/. These are those that double up as educational kits too!
- Giving them chores is a good idea where you give incentive to the child if he performs his duties well. It is a great motivational tool.
- School trip planning can be entirely left to them to bring home the point to them that they need to manage their money in order to be able to save in their kitty.
- Same also goes for vacations that the family may take.
- Starting early is the best thing to do!
- Explain the jargons to them to be able to enable them to understand the real world lingo.
Your kids will love to thank you for equipping them earlier in life. I am sure you will feel so proud of yourself then!!