When I was growing up, I got myself into quite a bit of debt. My husband and I continued to go into debt until we learned some very valuable lessons over the years. Now, I’m happy to say that I’m a frugal person, but as you can see, I wasn’t always a frugal person that was free from debt. Unfortunately, I fell into some major pitfalls and had a little bit too much fun with credits cards, etc… I didn’t have anyone to teach me the importance of money and how to manage it while I was growing up. I mean, not to a great extent, anyways. That’s why I’ve made it a point to teach my kids about the value of money and how to avoid debt. Basically, I don’t want them falling into the same holes that I had to dig myself out of.
Below, I’m going to go over some lessons that I’ve taught my kids about money and I think every parent should teach their kids these lessons. That way, they’ll be fully prepared once they venture out into the real world. Scroll down to check out some of my tips.
#1. Show them the Money
It’s important that you show your kids money as soon as they hit the age where they’re able to count. Teach them how to count money and also teach them the differences between checks, credit cards, cash, coins, etc… It’s better to show them a physical representation of money, rather than just showing them numbers on paper, so keep that in mind when teaching them. That way, they can see how quickly money can go away.
#2. Show them How to Make a Budget
It’s very important that you start teaching your kids early on how to make a budget and stick with it. It’s important that you make sure they know the difference between wanting something and needing something. For instance, the next time your kids asks for a toy, you could talk to them about how long it would take them to save up the money to get that toy.
The next time you take them grocery shopping with you, show them how you compare prices and know how to get the best deal. Also, teach them about sales and coupons. I even let my kids hand the coupons over to the cashier and I tell them to watch the screen to see how much the price is going down. I also have them sit down with me while I’m planning meals and I tell them why we plan meals and how much food the average person wastes, because they don’t plan meals and don’t use the food they purchased.
#3. Teach Your Kids How to Save Money
Get your child a savings account at a young age and get them a piggy bank. Once the piggy bank is full, you explain to them how you’re going to deposit it into their savings account. It may sound hardcore, but you can even talk with your kids about interest, credit, etc… Just make sure they know how important it is to regularly save money and keep notes on how much money they have in their savings account. Give the notes to them, so they can keep track of their finances.