In this post we are going to cover my top tips for teaching kids about money. You might be surprised but many people’s money habits are learnt from their parents.
So let’s look at what you can do to help your kids.
The first step is the biggest and hardest. You need to sort yourself out.
This is going to be different for everyone.
You and your partner might already have a healthy relationship with money. This will be evident if live within your means, save for the future and invest your money. If this is you, then you have already done this step.
However, if you argue with your partner about money, don’t live within your means, struggle to pay your bills and/or have big debts, then this step will take time and effort. These items may highlight that you have money issues.
This is important as your kids will model your actions and learn from what you do more than what you say.
If they ask questions, answer them truthfully
Kids via their nature are inquisitive and wants to learn. At some stage they will ask questions and you need to calmly and truthfully answer them. These will become more challenging as your kids grow.
They could be where money comes from or why can John have this toy and I can’t. In these circumstances don’t just brush them with ‘We can’t afford it’. Talk to them. Explain that you work hard for your money and have to prioritise and make decisions about what you can and can’t get. Then maybe suggests they could do some odd jobs to earn money, save and then get the item they want. Then your kids will learn to work for their money and prioritise and make decisions about where their money goes.
- How to be a good financial role model for your children
- Give your kids the gift of financial success
If you invest, don’t hide this from your kids
One thing I am thankful of is my parents didn’t hide their investments from me. I just thought this is what people did. So when I started working I saved and started investing.
I didn’t know this wasn’t different until I started talking to my work colleagues and found that a lot of people live from pay cheque to pay cheque.
Don’t get me wrong, my parents were not rich, they were both primary school teachers. They were just good financial role models for me.
So if you do invest don’t hide this from your kids. You don’t need to go into detail and the nitty gritty, just don’t hide it. You will be surprise what they pick up. If you hide it, they will think it is something to be hidden.
If you are open, then like me they will think it is just something you do when earn money. Which I think should be the case, but that is a discussion for another time.
If you follow these top tips for teaching kids about money you will set a good foundation for your kids to have a health relationship with money.
Do you teach your kids lessons about money? Please share your tips below in the comments.