3 Tips for Teaching Your Children About Money

If you have children and you want them to be financially responsible, there are a few tips and tricks available that can help with educating them while also making the learning process as fun as possible. Teaching your children about money can help to better prepare them for their own future and how to properly handle the money they earn as they grow into adults. Depending on the age of your children, there are different techniques and methods of teaching about money that can assist with their decision-making in the future.

Be Open

A major tip when talking to children about money is to avoid labeling the subject as "taboo" or simply not discussed in the home. Although it is not necessary to share every detail of your financial situation with your children, talking about saving money, investing money and how to manage finances openly can help them to learn quicker while catching on to adopting your own spending and saving habits. Communicating openly with your children about money, its value and purpose and how it is important to save for potential emergencies and future purchases is a way to set positive habits in place. 

Create a Reward System for Allowances

If you are planning to give your children a weekly or monthly allowance of spending money, you can do so by creating a reward system or by setting rules for using the money as well depending on your child's age and maturity when it comes to understanding the value of a dollar. 

By explaining the process of working to receive an income, you can also incorporate household chores into earning an allowance for your children. It is possible to create a reward system on a chore-to-chore basis as well as based on completing an entire list of chores in a set amount of time.

You can also explain the rules of spending the allowance and whether there are any restrictions. For a more strict way to give an allowance, inform your children that the money they receive is for everything from fast food purchases to investing in a new gadget or type of outfit they are interested in to help them understand how to work for what they desire.

Visual Aids

Using visual aids is also an important factor if you want to teach your children about saving and spending at a young age. Visualizations can help with memorizing information and making use of it to children who may otherwise have no interest in understanding anything that is finance-related. 

Sharing photos and videos with your children on money and finances is often more interested than explaining how to save money, as this may not seem important to your children at the time. Visuals are ideal for children who are younger in age or who show no interest in finances and saving money at all.

Communicating openly is the most effective method of sharing new information and lessons with your children about money, which will ultimately help them to succeed financially as grown adults.

Leanne Bristow is a mother of three children and Loans Manager from Perth, Australia. Her company is well known for providing the best services for unsecured loans Perth has to offer. She says that it is essential for parents to teach their children the value of money from a young age and provides these tips to help.

Image courtesy of freedigitalphotos.net


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