- March 10, 2017
- Posted by: Ethica Private Wealth
- Category: Blog
Our world is constantly changing, which is why arming our kids with the necessary financial skills and responsible money behaviors necessary to help them to independently manage their finances with or without your help is so important. We can all take a lesson from the past and teach our kids about money in ways they can understand and in ways that are appropriate for their age.
Why is it important to teach them about money?
Well, we all know that it’s much easier to teach children from an early age and have it stick with them than it is to try and teach them later on in life. Although teaching them young is not necessarily fail-proof, it will better prepare them for managing their finances well into adulthood.
One way to help them teach kids about the value of money and what things cost, is to show them what they are buying and how much it costs. The problem with buying goods online is that it’s almost as though the money is invisible to children because they do not see money being exchanged for products and services.
What are the right money teaching moments?
Some of the best times and moments to teach your children about money is at basically any time you plan on doing any financial transactions. For example, at when you withdraw/deposit funds and/or pay bills at the ATM, when buying food at the supermarket, when you receive bills and when you pay them online, given them an allowance and teaching them how to save and spend it, and even when you are putting your family’s budget together. Kids learn quickly and they love being included in anything you do. Why not use these moments as excellent opportunities for teaching them healthy life habits?
Be aware of their age and teach accordingly
Each age group has a different concept of money so when we teach our kids about money, it’s important that we use tools and scenarios that are at their level and capacity. When kids are much younger, teachings about money should be simple and basic since their attention spans tend to be shorter. Primary school children tend to have a larger capacity for learning more about how things really work and will better absorb money habits on subjects such as how to price compare when shopping and how to save for the things they want. Opening bank accounts teaching about credit and borrowing is typically best for teenagers. They are at a time in their life where they want more responsibility and many of them get part-time jobs and earn their money. It’s never too late to start teaching them about money, but the earlier you start, the better it will be for them and their financial future.
We all need a bit of help when it comes to planning for the future and some of us may need that bit of extra help and assistance when it comes to managing our finances. Find a financial planner and start working with them to see if you can start taking control of your finances today.