The best time to catch them in money matters is when they are young. Catching them young in money matters is not out of the picture of things you can teach your kids now they are young and this holiday period is the appropriate time to do so. It is likely they will be joining you in some of your holiday shopping. Use the opportunity to teach them good spending habit by explaining the importance of buying what they need – something they cannot live without – and not what they want. Teach them that some things they desire may not be so necessary and they can do without them. Get them involved when going through what you have bought for them to see that you are actually living by example by making them see that what you bought are things you have on your shopping list and to ensure that nothing was left out of the list.
As you watch them learn new skill while growing up, that should also be the same way you should teach them money matters from a young age. If you missed it at their younger age, you can start now. No matter what their age is, it’s never too late to start teaching them about money management for a financially secured future.
An article, “Financial Literacy for Kids”, by TD Bank discusses elaborately ways to teach kids about money based on their various ages.
Ages 3-6
Start teaching kids under this age range about money by making a game out of counting loose change into a piggy bank or jar. Incorporate fun in money teaching by asking them, especially the younger ones, to check their piggy bank or jar with you preferably over the weekend to find out how much money they have. They may be too young to understand the concept of money, but they are learning to count, and have a basic knowledge of quantities. By doing simple exercises like this one, you can help lay a foundation of financial literacy for them later in life.
Ages 7-8
Start teaching them about money through the importance of saving by creating a special savings day. Instead of an allowance, give them some money that they put in a piggy bank for a future goal like a special toy. You can pick the first Saturday of every month as a recommended time to check the progress of the savings. At this age, children are developing a sense of time. Even though they don’t understand the idea of “next month”, they can learn how putting money away now means there’s money for later on.
Ages 9-12
Teach your kids about money by letting them help with the basic adding and subtracting involved in checking the total cost some of your shopping list. Between the ages of 9 and 12, kids have usually grasped basic math skills, like addition and subtraction, which can help them learn the value of money. Get them involved in making guessing game about the cost of common household items. From electronics and appliances to food items, you can help teach your kids about money by providing real world examples of things you need or want to buy before going shopping. At this age, children are becoming junior consumers. It’s important to give them the right tools to make wise choices.
Ages 13-15
Encourage them to start a tomorrow fund by dividing their allowance into 3 jars or envelopes – first jar for spending, second jar for saving, and the third jar for sharing. This is recommended when kids get weekly allowances. This is important because teens are usually receiving an allowance or gifts money. The money doesn’t matter as much as how it’s handled. Taking the time to teach kids about money when they receive it is one way to help improve their financial literacy. Help your teens make tangible goals and the best way to reach their goals because at this stage, they are developing their plans for the future.
Ages 16-18
Work with your teens and talk about savings goals, what they are doing to get there and how long it will take to reach their goals. Recommend this when they are considering post-secondary education. At this stage, teens are often seriously planning for the future and looking forward to college, university or trade school. When you are considering a large purchase, talk to your teens about the features you must have, like a warranty, compared to the extras you would love to have. The recommended time for this is before making a major purchase. Sharing the family budget will help your teens learn about real world costs and keep their expectations in line with your family’s financial reality. Being upfront about household cost can help them build financial knowledge that they can use in their everyday life.
Continuous money conversation with your children makes them more financially confident as adults. It makes them financially ready for real life experiences. Any financial knowledge you inculcate in them at a young age goes a long way for them to set their priorities right.
Enjoy your weekend in a grand style.
