Teaching Your Children How to Manage Finances Wisely
Many adults nowadays have poor spending habits, thereby affecting the financial aspect of their lives. Making smart decisions about money should be developed at an early age. In our Preschool in New York, we believe that this stage in their life provides a sense of readiness for a child to absorb new information as well as ready to form habits that they can continue on to their adulthood.
Parents are responsible for raising financially wise children. Here are a few tips that you can use to teach money management and budgeting to your young ones.
- Check your own money habits.
Your children follow your examples. So, if you do not know how to spend your money wisely, you cannot expect your young ones to do the same. Be a good role model for your children. If you do not know how to do it, then, it will be a great opportunity for you to learn together with your young ones.
- Understand the value of money.
Discuss with your little ones what money can do. Let them know that finances are crucial in acquiring certain things that are essential for daily living such as food and shelter. However, make sure that they also understand the value of hard work and integrity when it comes to money.
- Know the importance of a savings account.
Your young ones should know how important a savings account is. Help them set up their own savings accounts which they can use to save up for a toy they might want to buy or for something else. Train them to deposit a certain amount on their savings account regularly. Monetary gifts they may receive from others can be stashed away.
- Provide income opportunities for your little ones.
Even when they are in Head Start Pre-k, they can actually have opportunities to gain income. For instance, they can do some chores. You can help them decide on what they can do with the money they have earned.
- Get them involved in family financial planning.
Allow them to watch you do your monthly budget or pay the bills. Ask their opinions about the necessities that you should buy and more.