There is never a bad time to start teaching your kids about money. The best approach is to make it a part of their life, just as it a part of yours.
Money makes the world go round… or so some people feel. Whatever your thoughts are on money, it plays an integral role in most everything we do. Therefore, the best way to teach kids about finances is to include them.
Start first with a piggy bank. Even young kids love the sound of coins dropping in the slot. Then move on to using money for math lessons and history lessons. Discussing the amounts and designs on our county’s currency is a natural way to learn.
As your children grow, continue to include them in your money matters. Let them do a budget with you. Take them to the bank. Allow them to sit and help you pay your bills. Show them how taxes work.
While all of this may sound simple, it is often not done in a family. Children are usually kept out of money management and financial discussions. Why? Is there some parental fears? Is it too much of a hassle?
As with everything in your child’s life, it is important to be age appropriate. There is no reason to scare your children that you can’t provide for their basic needs. But, it doesn’t hurt to explain to them exactly why you can’t buy something for them, instead of just saying no.
Even though many families are looking for a quick system to teach their kids about money, really the best method is through example. Include your kids in your money management methods. Help them understand how taxes work and what services that money funds. Explain interest rates and savings or investments as they become older. Let them see the bills, explain how much the electricity is and how that amount can change if the light is left on. Incorporating a grasp for the value of money is a key lesson that your kids will carry on with them for the rest of their lives.
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