Quick 5 minute read to teach parents to teach their kids to save
“I think parents need to start teaching kids about the importance of managing money at an early age. Sometimes parents wait until their kids are in their teens before they start talking about managing money when they could be starting when their kids are in preschool.”In relation to teaching kids about money, Warren Buffet, CEO of Berkshire Hathaway, November 22, 2013. Warren Buffet: How to teach your children about money
Stuck inside due to coronavirus? While your kids are home due to the coronavirus pandemic, teach your kids about finances and money.
Here is some important financial advice to teach your young children to be better adults savers and savvy money handlers.
While your kids are home due to the coronavirus pandemic, teach your kids about finances and money!
Some adults fall into hard financial times and have a lot of debt because they were not properly taught how to save money and to manage finances when they were children. Do it now. Don’t wait another day. Talk about math and money to your kids in everyday conversations – while baking, cooking, creating a shopping list, writing down your bill list – as there are so many ordinary things you could be doing to teach them to become extraordinary!
Financial advice for children of all ages
Here is some important financial advice to teach your young children, so they will become more financially savvy adults when they are handling, earning, and saving their own money. Kids should start learning about money and finances at a young age. This will probably discourage the “I want this, I want that…” begging behavior parents constantly hear, and hopefully prevent outlandish spending habits as an adult.
Like I mentioned, some adults fall into hard financial times and have a lot of debt because as children, they were not properly taught how to:
(1) save money,
(2) earn money, or how to
(3) to manage finances.
Parents need to do better. You can do better starting now!
Kids can learn about money and finances starting in preschool, around 3 years old. This will probably discourage the “I want this, I want that…” begging behavior parents constantly hear, and hopefully prevent outlandish spending habits as an adult.
Here is some important financial advise to teach your children starting at a young age, so they will become more financially savvy adults when they are handling, earning, and saving their own money.
My advice is for parents of every income level – regardless of race, education, employment, background, location, and financial status.
$ . A . V . E M . O . N . E . Y N . O . W
(1) At a young age, get your child a piggy bank. Teach your child what a dollar (or pound) is, and explain the value of each coin. Add some money to your child’s piggy bank.
(2) Open up a savings account with your child. When your child is old enough to read and understand numbers — it is time to teach your child about their very own account — and teach them about saving money. Many adults use online banking, but I would suggest using an “old fashioned” bank book or check register, and help them write in their deposits, and show them how much they are saving.
For 5 minutes of your time, you will be able to use my words of wisdom to teach your kids about saving, using, appreciating, and spending money.
- Some banks have kids clubs, and may offer a free incentive, or toy, for joining.
(3) Get your child their very own calculator. Teach your children how to add their deposits to their current saving account balance.
(4) Actually go to the bank with your child. Many adults have direct deposit, online banking, mail in deposits, and may hardly ever visit a bank! Even when you child only has one or two dollars to deposit, make a special visit to the bank (when you are out with your child or doing errands anyway), and help your child make the deposit and reiterate the importance of saving.
(5) Equate an allowance with the accomplishment of a chore. Instead of just giving your kids money, teach your kids to earn money. This can simply be cleaning their room, helping with the dishes after dinner, vacuuming, or whatever household chore your children can be trusted with.
(6) Teach children to save some money they receive from gifts. Parents decide how money given to a small child from Grandma or Grandpa, or other relatives, is spent. As your child gets older and starts to understand what money is, teach them to save some and spend some on themselves for a present.
- For example, let’s say your child receives $30 for their birthday. Teach them to save $10 in their savings account, and $20 can be spent on books or a toy.
(7) Explain that money does not grow on trees. Explain to your children that you make a limited amount of money, and then bills needs to be paid – utilities, food, car expenses, mortgage or rent, school supplies, and clothes. Do not burden them or overwhelm them with the numbers (they are still kids, after all), but an explanation about family finances teaches them that parents do not have an endless supply of money. Teach your kids that lights need to be turned off when they are not using them because electricity costs money $$$, is a valuable lesson.
Teaching teenagers to save
(1) It is important to teach teenagers how to economize at home. You can start by teaching your teenagers about coupons and explain to them about the economy. A discussion on the price of gas will inform your child why they cannot borrow the car and take a two hour joy ride.
(2) Encourage your teen to get a part time job, and start saving for their future. Instead of playing video games for hours on end on the weekend, they can start working and start saving for college
If children understand finances and the value of saving money at an early age, they will most likely avoid debt and financial hardship as an adult. As parents, it is important to find the time to teach your children how to be frugal and save at an early age, and how to spend money wisely.
Teaching your kids about family finances and your perspective of money will help them to be responsible, aware of the value of money, and instill in them lifelong lessons of planning and saving.
Please send your children into this world as financially fit and savvy adults.