Some children are natural-born savers, while others need a little more guidance. Whichever category your kids fall into, it’s crucial for you, as a parent, to act as their mentor. While this might sound daunting, teaching children about slowly saving up for goals doesn’t take that much work.
If you want your kids to feel more confident about money but aren’t sure how you can help, then this blog is for you. It contains some handy tips that you can use in your day-to-day life with your kids, so get ready to start this educational journey.
Open A Bank Account
If your children don’t have their own savings account, now is an excellent time to open one. Allow them to be part of the process and explain what different versions can offer them and why some are better than others.
The financial world is moving more and more towards the digital world, so it’s always worth telling kids about setting up an online banking account in your name for them. Take the time to explain how certain apps work or go through some Chime reviews. Your kids probably don’t have an awful lot of money to put in a banking account, but it can help them build the healthy habit of thinking of the future.
Share Your Story
One of the best ways of getting kids to understand savings is by sharing your own experiences, the good and the bad, allowing them to learn from any mistakes you might have made.
If you have some money invested in stocks and shares, begin teaching your kids the basics so that they feel more confident when they become young adults. Be transparent about when you started saving and how you managed to build up a down payment for your home.
Your kids will probably have lots of questions about finances once you’ve opened the discussion. It’s essential to listen carefully and answer their questions as honestly as possible. It can be tempting to brush them off or get frustrated, but every question you answer will give your child a better understanding of how money works in the world.
If your kids have difficulty visualizing certain concepts, use real or fake money to illustrate your points.
Teachable Moments Through Play
Sometimes, play is the easiest way to familiarize kids with a concept. Don’t be afraid to make up games like shopkeeper or buy Monopoly to help the family feel more financially confident. You’ll have to move on from board games and discuss real-world applications at some point, but it’s a great place to start, especially for younger children.
Give Them Pocket Money
Even a tiny amount of pocket money can help kids get some real experience handling cash. They’ll be able to decide whether they want to spend or save their money, allowing them to understand the cost of certain items. To learn more about setting up an account, click here.