Easy Ways to Teach Your Kids About Money

Money management is a complicated subject. It there is no consensus about the best investment strategies, how much to save and where to get the best advice. Much of it is up for interpretation. So, how can you prepare your kids for a healthy financial future?

To begin, encourage your kids to be aware of money as a concept. It’s important for them to know that it does not grow on trees. Rather, earning an income requires work, saving and some degree of sacrifice. One easy way to do this to let them tally the bill when you go out for a meal. Get them to add up the cost and even see if they can include a tip. This is a subtle way of showing your children that payment is involved. It can also help them sharpen up their math skills. You might even ask a question, like “How much of a tip should I leave our server?” Follow it up by inquiring about why and help them reach a reasonable conclusion.

Another way to prepare your kids is to support them if they wish to start a business. Whether it’s setting up a lemonade stand, selling their old toys or arts and crafts, all of this can be useful. Not only can it teach them the value of work, but it will prompt them to learn about inventory, acquiring customers and even marketing.

Try to get into the details of commerce with your children. For instance, don’t simply give them ten lemons for their lemonade business. Instead, explain to them how much each lemon cost to purchase. You might even go as far as to deduct that expense from their profits. Ask them questions, like “Why are we selling lemons and not limes?” Encourage them to think about some of the mechanics of having a small company.

Even if your children aren’t interested in having a little business, they will likely want pocket money. You can help them earn it by compensating them for doing additional chores around the home. For example, your kids might be required to do the dishes after dinner each night. But perhaps you could offer them a few dollars for folding the laundry – or some other activity that wouldn’t normally be part of their lives.

Finally, encourage your kids to develop a thirst for knowledge. Advocates for financial literacy, like Alexis Assadi, often promote studying a variety of subjects – not just ones that relate to business. A child who enjoys learning will have an easier time grasping more complex economic concepts in the future.

We want our kids to grow up happily and to be healthy. We all remember our childhoods and want to give our young a better life than we had. We also want them to be ready for the next stages. You don’t need to bore your kids with financial magazines to teach them about money. There are plenty of fun, family-oriented ways to get them to notice its value.

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