Teach Your Kids to Save Money
Edited by Laura Smith, Dougie
You bet an old dog can still learn a new trick or two as even your little tyke can learn financial literacy like a pro - my two cents. You can teach your kids how to save money before they can even figure out how to tie their own shoelaces.
Many parents think that money matters should be limited to strictly adult discussions which leaves children in the dark but expert studies show that teaching your kids the value of earning, saving, and spending money makes them more reasonable and responsible individuals in the future. Some people would advise to wait until your children is more mature or mentally equipped with handling computations or strategies in money management and investment planning. However It is in fact advisable to shape their financial perspective at an early age because this has been proven to separate those who are able to manage their finances well from people who are suffering from piles of debt.
Sure enough, financial matters do have an awful lot of jargons that a child could find very challenging to master as even an adult could find it relatively confusing. However, regardless of all the financial workarounds, managing money is as easy as 1-2-3 and you can definitely teach a toddler the basics and value of saving for the rainy days which will turn out on both your advantage for the future. Inculcating the value of hard-work and looking at money as more of an investment than a mere reward is very important especially because some parents would spend lavishly in the effort to spoil their kids' every whim but this kind of behavior can eventually work against both parents and children. Sitting down with your children and teaching them the value of every cent and how to creatively and effectively save or even invest for future needs will help strengthen their mindset on working hard as well as saving to achieve financial independence way before the retirement age.
Financial gurus would advice you even when seeking financial investments or insurance coverages that the younger you are, the better chances you have to be able to save and gain more leverage for financial freedom today and beyond your retirement age. This could benefit your child and even his or her family later on in the future. Modern parents believe that teaching financial literacy or the importance of simple saving strategies is a survival or life skill that you can pass on to your child and that which he or she can benefit from on day one. This is definitely a useful skill that your child can take advantage of even before he or she perfects mathematical equations. Knowing the numbers is essential to saving but financial education resonates more than just basic accounting - it's all about imbibing the right attitude and perspective about money while knowing your priorities. More so, it's all about timing and even the ability to take in more risks than one can afford especially if these are calculated ones.
- If you have problems with any of these steps, ask a question for more help, or post in the comments section below.
Categories : Parenting
Recent edits by: Laura Smith