We all want our kids to own and properly manage their own money in future. How then do we instil the required knowledge and discipline needed to raise financially responsible citizens?
Introduce them to money
You can start by introducing them to coins. Allow them to own some coins and let them understand the value of those coins. Let them make their own payments once you are off to buy their snacks and sweets and also encourage them to spare some money and have it saved in a piggy bank.
Allow them to participate
Allow them to accompany you to the bank once in a while. Write a cheque in their presence and explain to them what you are doing, explain to them when you are using an ATM card or paying for groceries. Simply involve them in simple transactions and payments.
Open them a savings account
Simply open them a savings account in your favourable bank and let them accompany you as you go make some deposits. Once they have saved some tangible amount in their piggy bank go bank it together. You can use a small amount from their savings to buys them something small just to motivate them to keep at it. This way they will learn the need to create a savings culture and how rewarding it is.
Point to note: Most banks will give you a free piggy bank once you open a kid’s account.
Offer an allowance
Introduce them to chores and offer an allowance once completed. This way they will understand how money is earned. They will also understand the value of work and what it takes to make money. Only reward them when they do a good job so that they understand the need to be good at their work.
You can let them enjoy a small amount from their allowance to keep them motivated but save up a good amount in their piggy bank and bank it later on. The goal is to teach them how to properly make and manage money.
Say no to their requests sometimes
I know how much we love our kids and how we want to spoil them. But they won’t learn any money lessons if you are always buying them everything they ask for.
Say no sometimes or make them wait for things they want. You can tell them you will buy them a bicycle but after I get money at the end of the month. That way they will understand you are willing but money is not always available which a fact either way.
Introduce them to giving
Let them learn to how to share their toys with their cousins and their snacks with the neighbor’s kids. Let them take an offering to church and involve them in your charitable activities. This way you are teaching them not to be greedy even with good things. They will slowly learn generosity and selflessness. They will also learn the need to have money goes beyond our own needs. It also involves other people.
It’s good to note that kids will always follow your lead. This means if you are not financially responsible yourself then it’s going to be hard for them to learn. Creating good financial habits yourself and letting them observe will play the biggest role on how financially responsible they become future.