Parents always say that they want to teach their children the importance of money but only very few ones really invest effort in doing so. Aside from putting aside bank accounts for kids, every parent is responsible to talk to their children about financial responsibility whether or not he shows interest in playing toy register and plastic coins.
You may wonder sometimes about when is the perfect time to start teaching them about money. When is too soon and when is too late? This is a very normal concern asked by parents. But is there really a perfect time to teach your kids about money? If you want your children to grow up making smart money choices, then the answer is as soon as you can.
They say that the most valuable lesson in the money journey is to understand the difference between wants and needs. More often than not, we adults purposely mix these two concepts up because we cannot fight that urge to splurge. What we can do for our kids, however, is to start introducing the differences using practical examples. Children as young as five years old have the capacity to comprehend this, with the right approach.
Kids follow what parents say. It’s that simple with them. They copy your actions and adapt to your habits. If you have been giving in to their every demand when it comes to purchasing, then it’s very likely that they think that money comes easy and they can just ask you for anything they want. On the other hand, if you start disciplining them by not giving in to their every demand and showing them that needs comes before wants, then they would start building a new grip about where to put money.
If you go to a shopping mall and the kids start steering you to the aisles on their favor, be firm in explaining to them that you are there to buy necessities and only buy necessities. Toys, shoes, and gadgets for one, are the most common items kids beg for. Draw a clear picture for them that these things are not a priority. They have a pair or two of sneakers is more than enough. Piling up lines and lines of clothes is not practical. Catching up with the latest mobile phone is not a smart investment. Ask them whether they think these things would benefit them in the long run. Show them all the other stuff they have acquired over the years that ended up untouched and just stored in the garage. This can serve as an eye opener to them and a reminder that not every single material thing they desire for, they should get.
As you go along this journey with your kid, keep in mind that this might be a little challenging in the beginning especially if they got used to getting what they want in the past so easily, but in the end, consistency is the key. Be the example your kids want to be, the smart spender you want them to become.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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