As a parent, one of the most important aspects of your job is to make sure that your child is prepared for what comes when they’re no longer under your roof. Aside from overseeing their education and making sure they know how to cook, clean, and take care of themselves, you might want to spend a little time talking about money with them. A lot of young adults enter the world with very little financial literacy, so how do you make sure your kids get off to a better start?
Use Some Of The Digital Learning Tools Out There
Financial literacy for kids has become an important topic as of late, and there have been many apps dedicated to just that. Apps that teach financial literacy can help kids earn, save, and budget in real time, with lessons on spending and saving, tasks you can set, and visual feedback to clearly communicate financial principles.
Start Teaching Long-Term Savings
Delayed gratification is not a concept that comes naturally to kids, but it can be vital for your financial health. As such, focusing on long-term savings goals and their benefits, such as with a RESP account, can introduce the concept well. As they grow, show them how the money in their RESP increases over time and how government grants help it grow faster, and its purpose in helping to pay for college or university. This can plant the seeds of financial patience and goal-setting.
Maintain And Talk About Healthy Money Habits At Home
Kids will learn their money habits from you. If you model responsible ones, such as budgeting, saving, and using tools for comparison shopping online, then your child is going to naturally absorb them. They’re a lot more likely to absorb them even quicker if you talk about them, of course. Involve your child in small decisions, like choosing between two items based on price or value.
Talk The Risk Of Online Spending
Online safety is vital for kids, not only to protect their personal information, but stop them from spending when they shouldn’t. Marketing is constant online, even for kids, so it’s important to teach them to think critically about spending online. You should talk about how influencers get paid to promote products, highlighting that not everything shown online is worth buying. You should also set limits on digital purchases, encouraging them to pause and think before they spend their allowance.
Encourage Earning Opportunities
One of the most important things about money that your kid needs to learn is that if they want it, they typically have to work for it. Giving your child chances to earn their own money, whether through household tasks, pet sitting, lemonade stands, or birthday cash, teaches them to get in the habit of working. This can be vital for helping them get their first job, building a work ethic that can last them through life.
Good financial habits tend to carry on through life, so the sooner you teach them, the better. There are more beyond those mentioned in the tips above, but these should help demonstrate the most important.