Finance management is a life skill that it’s important to teach to children of all ages. At any stage in life, there’s always more learning to be done when it comes to managing money. No matter if your children are in elementary school or done with college, here are finance management tips to help you guide them through life!
Young children
Even young children can learn the value of money. At this age they are beginning to learn simple math and monetary values with their schooling, so be sure to continue this education at home. When kids are at a young age, they will need engaging and fun ways to learn about the value of money!
- Allowances are dependent on your family dynamic. However, most American parents believe that they should be giving their children an allowance. You can choose to gift this money to your kids or have them earn it by helping with age-appropriate chores.
- Piggy banks are a great way for your children to start saving. They are too young to have a savings account, but they still can learn how quickly coins and dollar bills add up at home!
- Online tools and board games about money are another way to engage your kids to learn about this life skill. Family games like Monopoly are a great way to spend time together and learn, while downloading apps and online video games for them to play on their own can help them learn while having screen time.
Teens
Having teens in the house comes with unique challenges. Teenagers start to learn independence and usually want a job, car, and money to go out with friends. The first step might be encouraging them to get a job. This isn’t to say that they have to stop earning an allowance or doing chores around the house; this is another way to help them master skills they will need in adulthood, like time and money management.
Teenagers can benefit from having a job in many different ways. First off, they can open a checking or savings account to help them better manage the money they earn. With online banking, it’s easier than ever to see how much money they have to spend or have saved. This is an opportunity to teach your children to save part of their paycheck on a regular basis. Setting aside this money to spend on something they have been looking forward to buying will feel like a big accomplishment to them.
Adult children
There’s no denying that even into adulthood, we as parents will help our kids with vital life lessons, including finances. When your kids grow up and want to pay their college tuition and buy their first car or house, you’ll need to be there to help. Here are some quick and easy tips to remember when your kids come to you for advice:
- College tuition. Paying for college with loans is a serious decision, which most 18-year-olds don’t fully understand. To make college as affordable as possible, encourage your high schooler to apply for as many scholarships as they can. Not only will these help them afford tuition, they can also provide them with spending money for food and other essentials while they’re away. Additionally, federal loans are an option and are a smarter choice compared to private loans. Federal loans usually have lower interest rates and better benefits when it comes to repayment.
- Buying a house. When your child is ready to move out and buy their first home, try to equip them with all the tips necessary to make the best investment possible! Buying a house is one of the most expensive things we do in life, so help make it easier for your child by educating them about FHA loans and first-time homebuyers’ grants.
- Purchasing a car. Buying a new car is another daunting decision to make. Regardless of whether your child is 16 or 26, they will likely need your help throughout this process. Let them know that establishing a budget before shopping is very important, as they won’t know what kind of car they can buy without understanding what they can afford as a monthly payment. Then, have your child check their credit score online to ensure it’s in good standing. Doing these two simple things beforehand will make the car-buying process a lot smoother.
There are several invoice template you can check out.
Finance management is a life skill that relies heavily on parents to teach their kids, as this is a subject that’s not often taught in-depth in school. The lessons you teach your children about smart money management will always be helpful, no matter what age they are, and will be utilized for years to come.
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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