Financial skills are so important to help navigate the world as an adult. The earlier children can get into good habits the easier money management can become.
As a parent, there are lots of fun ways of teaching kids about money and helping them learn and get involved, so we’ve compiled our top tips on how to teach your child to manage money and become smarter with their spending.
Let them earn their money
Give your children opportunities to earn their own cash so they can start to understand the value of money and how to get their hands on it. From tidying their bedrooms to feeding the dog, there are lots of ways for them to get involved.
Create a place to save
Make sure your child has a place to save their money. Whether it’s a more traditional piggy bank or a children’s savings account, allow them to see the money they are saving to make the challenge more tangible.
Set money goals
By agreeing a savings goal with your little one it puts them in control of their own challenge and ensures they have a target to work towards and achieve. Once they have reached (or beaten!) their goal, your kids will have a fantastic sense of achievement and look forward to the next savings challenge.
Learning how to stick to a budget at a young age is great practice for when they grow up.
Give extra incentives
Many children respond well to incentives, from tasty treats to toys. Once they’ve smashed their savings target, make sure they receive a reward. This will hopefully encourage them to get into a habit of saving in the future.
Let them make big decisions
As your kids get older, they thrive on making their own decisions. Let your children make the choice on how to spend their hard earned savings. This will allow them to really understand the value of money and realise how to spend their cash wisely in the future.
Get talking as a family
Make talking about money a normal subject at home. Many families find discussing money a taboo or uneasy subject, but introducing the topic regularly can help to instill positive habits for saving money like budgeting and saving, from an early age.
Teaching children about money can be as simple as discussing the cost of groceries and bills, so they begin to understand the vast difference between where and how money is spent on a regular basis.
Conversations like these can lead to healthy money habits as an adult.
Do you need support when it comes to saving and budgeting your money? Sign up for a Vox Money account today!