Simple lessons to raise a financially savvy child
Teaching our kids to be financially savvy will definitely help them later on in life.
Read more: Saving tips - no matter your income
We are living through tough times and if anything, that should motivate us to want to do better for our kids.
One such way is to teach them to have a positive relationship with money.
Because as we all know, it can be so easy to fall financially and getting back up takes time, support (which isn't always so readily available), and courage.
"Children as young as two or three can understand simple money problems, and research by Cambridge University suggests they have formed financial habits by the age of seven!" (MSN)
Check out this video, courtesy of TikTok.
@chaymaesamir I asked kids how to save money 💸 #LearnOnTikTok #moneytips #costoflivingcrisisuk ♬ original sound - Chaymae Samir | Entrepreneur
1. For one, encouraging saving with our little ones could begin with a savings tin - aka traditionally known as a piggy bank.
Teaching our kids the basics starts with explaining to them what money is and why we have it and need it. Explaining that we earn money and that the bank keeps it for us is important.
We don't want them growing up thinking going to the bank for money is the solution when you don't have money. This behaviour could cause a 'credit' mindset.
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2. Providing your kids with spending money or an allowance is all well and good, especially if you assign them duties or chores in the house where they earn money.
But encouraging them to manage their own money will teach them that money does run out. Instead of replenishing their allowance when they run out, let them feel the feeling of not having money.
3. "Explain what taxes are to your children in gentle terms, but as they get older make sure they understand the cause-and-effect relationship between paying tax and their education, healthcare, etc." (MSN)
Educating them about paying their taxes and perhaps introducing them to a tax practitioner when they reach an appropriate age might be helpful.
And check out this savings challenge for kids, courtesy of TikTok.
@b.budgeted Get the childrens challenges and have them start today ! We need to teach our young people the importance of handling money. We cant say we want to break generational curses by just handing down the money. Those children have to know and understand what to do with the money you leave them! #bbudgeted #pennypinchers #savethosecoins #goodhabits #howtosavemoney #childrensavings #lowincomebudget #mindsetchange #generationalcurses #generationalwealth #savingmoneywithlowincome #savingmoney #smallamounts ♬ Roxanne - Instrumental - Califa Azul
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