Everyone has different ways on how they want to raise their children in regards to finances, but no matter your tactics, everyone same end goal, to have money smart kids. But where do kids learn their greatest lessons about money? Well, that comes from you and the ways you decide to teach your children about money. So why not help kids develop smart money skills with some of the best advice we’ve rounded up when it comes to teaching kids about being more money savvy.
Online Tools
It’s no surprise how much time kids spend online and playing electronic games these days. So instead of fighting them to put the games down or to get off the computer, why not play into what they’re already doing. The Globe and Mail released a great article breaking down the best online tools to teach kids about personal finances. There are also other online resources that your local bank can provide, such as TD Canada Trust offers financial literacy and an educational toolkit for both kids and parents. With interactive features such as quizzes and games like kids are already playing online, your kids can be learning financial basics.
Photograph via Pixabay
Piggy Bank
When it comes to piggy banks, there are a lot of mixed opinions on them. Some parents don’t like the idea of children putting money into a piggy bank with the ambiguity of putting money away and children not understanding why they are putting the money away. Along with, when you are putting money into a piggy bank, you don’t know how much is there to teach them how to manage it. On the other hand, piggy banks have become a staple for children; they see their piggy bank as a form of a reward and this entices them to want to contribute to it. When adding to a piggy bank, this can be an excellent way to teach children about the value of money and a way for them to learn the basics about coins and bills in terms of their values. And as long as the money is adding up this is an effective way to teach young ones the basics of savings.
Photograph via Pixabay
Allowance
Give kids money! That’s right, we just encouraged you to give the little ones money. The more important part is teaching them to spend it. Allowances are another one of those topics that has mixed reviews on whether it is beneficial or not, but again, it is your parenting style that will determine that. Seen as another tool in the money learning process for kids, most children receive a small allowance on a weekly or bi-weekly basis based around rules parents set like doing chores, or as a reward for things like good grades at school. Giving a child an allowance can give them the opportunity to anticipate spending choices and learn what things really cost, along with saving their allowance for bigger items and important money tips. This is also an opportunity for children to make money mistakes and learn from them with independent thinking, which can then reinforce good spending habits in the future.
Photograph via Pixabay
There are many resources out there on how to raise money-smart children. What are your favourite financial tips on raising financially smart kids?
