The hustle and bustle of life, likewise the preparations, persistence and resolutions people develop as they journey through life is primarily influence by the desire and decision to succeed against all odds. This temerity and resilience is consequently transferred somewhat to subsequent generations and posterity. When it comes to money and living comfortably, they are treated with the same gravitas as people moved heaven to ensure they make as much as possible, even sometimes at the detriment of the health of the family.
Developing a financially inclusive life must not be relegated to just the adults of the family. With the rate at which the world is evolving, systems and modus operandi in the corporate world are swiftly changing and home management as well is witnessing some facelifts. Hitherto, women were merely homemakers, but now, they are pretty much hands on and career driven as well, making their own monies to support the running of the home. The liberal nature of the typical 21st century home has paved way to allow the curiosity of children, especially at their impressionable stage of life to basically experience and build some worthy character and values such as time management, chore responsibility and even financial freedom to some extent.
RAISING FINANCIALLY SAVVY KIDS
The innocence and inquisitive outlook of children coupled with their nimble minds makes it quite easier to masticate various concepts tailored to their needs. Indeed, one of of the interesting things about being around children is that they are a blank slate awaiting parents and teachers imprint. At such age, they regard as the gospel anything which is relayed to them. However, having them throw tantrums here and there over certain demands they make of parents to buy anything which tickles their fancy, parents are increasingly making the decision to school them on how money is made and the discipline required to sustain and grow wealth, bearing in mind that there are quite a ton of financially irresponsible adults who were over-indulged as kids.
There have been quite some eyebrows raised on the premise that why should parents go all pecuniary on a child who has barely mastered count- ing. Well, the answer is simple, if the child can have enough maturity on what money can be used to buy, then he or she can grasp what not to buy at certain times in other to save for a bigger project.
As a parent, teaching money management for kids is one of the most important life skills you can impart to them. Nonetheless, teaching the concept of saving money to children can be a daunting task. Kids are naturally impulsive and often find it difficult to resist immediate gratification. Without getting agitated, you should know that a little creativity sends the imagination of kids into some ecstasy and with a lot of patience, you can teach the concept of savings for kids in fun and engaging ways.
ENGAGING KIDS ON MONEY ETIQUETTES
Methods and processes matter when children are being educated on money. The teaching tools and skills in ensuring not only understanding but acceptance and implementation is key. Teaching kids on saving money doesn’t require calculus, bar graphs and chart – what it will do is to drive them to the point of disinterest.
For children to better understand why they should save, it is mandatorily required for parents to comprehend why this is an important task for them. As parents, it is a no-brainer that they all want children to grow up to be responsible and financially independent adults. Teaching kids the importance of saving money is one of the best ways to help them achieve this goal. Not only does it help them build a solid financial foundation, but it also teaches them valuable life skills that will serve them well in the future.
By teaching your kids about saving money, you are instilling in them the value of delayed gratification. Particularly, this is relevant in today’s fast-paced world, where instant gratification is the norm. As such, delayed gratification is a crucial skill that will help your children make better decisions in all aspects of their lives. They will learn that sometimes it’s better to wait and save up for something they really want rather than impulsive-buying and regret it later.
BREAKING BARRIERS TO TEACHING KIDS ABOUT SAVING
While all is well and good on teaching kids the merits on saving, there are some few impediments which may rear its head along the way. Per research many parents are reluctant to even talk about money with their kids. A 2022 survey by T. Rowe Price found that 37% of parents avoided those conversations. To teach healthy behaviors regarding money, moms and dads have to find a way to discuss the subject at home.
To enable parents teach kids to distinguish between needs and wants, parents can quiz younger children on items found in their own home whether from kitchen utensils to clothing to toys, and ask them whether it’s something the family needs or simply wants. By drawing that distinction, kids start to get a sense that some purchases should be a higher priority than others.
Primarily, making saving a regular part of a child’s routine can set the foundation right for a secured financial future.
ABC FINANCIAL LITERACY IN CHILDREN
For all it’s worth, educating kids on financial literacy isn’t a life sentence. Conversely, it offers freedom to them now and in later life of which they are bound to be forever grateful and indebted. In its it helps kids develop a sense of responsibility and independence. Moreover, it gives kids a sense of accomplishment and boosts their self-confidence.
Now, the first thing for parents to do in order to get children financially literate is to help them set goals. This will be a ball in the park because kids naturally love setting goals, whether
One of the best skills to teach your kids is how to save money, and there’s a creative way to do it that will make the experience fun and rewarding for everyone. Parents must start by talking to their kids about something they really want to buy or achieve. It may be a new toy, shoes or perhaps partaking a program the kid is saving for and once they have a clear goal in mind, you can help them break it down into smaller, more manageable steps. For example, if the child wants to save up for a new trendy pair of shoes, you can help them figure out how much money they need to save each week or month to reach their goal.
To make things even more exciting, you can create a savings for kids chart or a thermometer to track their progress. You can also offer rewards or incentives for reaching certain milestones along the way, like treating them to a fun outing or activity.
Also, using a clear jar is a great method. All you need is a clear jar or container and some coins or bills. Have your kids decorate the jar to make it their own, then start filling it up with money. As the jar fills up, they will be able to see their progress and feel a sense of accomplishment. Using a clear jar is a great way to teach kids about the value of saving money. They will learn to appreciate the process of accumulating wealth and the power of compound interest. Watching their savings grow over time will give them a sense of pride and responsibility. Additionally, teaching kids about saving money doesn’t have to be a chore. By incorporating games into the learning process, you can make it a fun and engaging experience for everyone involved. Being boring just wouldn’t cut it. In fact, playing games is a great way to make the experience fun and engaging for everyone involved!
There are a variety of games you can play to teach your kids about saving money. One popular game is Money Bags, which is a board game that teaches kids about counting, and saving. In the game, players take turns rolling a dice and moving their game piece around the board, collecting money, and saving it in their piggy bank.
PARENTS ROLE IN RAISING FINANCIALLY DISCIPLINED KIDS
Children must not be left to shoulder the responsibility of being financially responsible alone. Parents likewise have a part to play in this endeavor because saving money is a habit that parents can teach their children at a young age. Incentives are a must in the equation of this education. Giving children an allowance can teach them the value of money and of hard work, if chores are involved. Importantly, parents must discuss with their kids their wants and needs – it is important to distinguish between the two. Explain that needs include the basics, such as food, shelter, basic clothing, healthcare, and education. Wants are all the other extras from movie tickets, to designer sneakers, a bicycle, or the latest smartphone. Giving children the room to explore mean of saving money is also essential. A survey by T. Rowe Price showed that more than three-quarters of parents said they paid their children an allowance in 2022, with kids earning $19.39 per week on average. In light of this, if you want your children to become savers, allowing them to earn and save money provides them with the opportunity to learn how to use it. When you offer allowances in exchange for chores, they’re also learning the value of their hard work. Parents must necessarily provide a place to save. When children have a savings goal in mind, they’ll need a place to stash their cash. For younger kids, this may be a piggy bank, but if they’re a little older, you may want to set up their own savings account at a bank or even get a kid-friendly debit card. The bottom line is that parents must necessarily set children on a financially disciplined path which they will thank them for in later life. You may start small, but the impact will certainly be bigger!