Children have many lessons to learn both in and out of the classroom but there is seldom a greater lesson that you can impart on your children than that of financial responsibility and how to manage their money. To help you educate your children on the importance of money and how to be responsible with it here are some helpful hints for teaching financial responsibility.
Teach Financial Responsibility – They’re never too young
When it comes to learning about money and its value they are never too young to be introduced to its concept. A great way to introduce money to pre-schoolers and young children is by role play. Playing shops with pretend money is a brilliant way to replicate real-life scenarios and teach children that if they want things then they have to pay for them. It doesn’t need to go much deeper than that at that age and it should all be through play and fun.
Teach Financial Responsibility – Get a piggy bank
Giving children a place to store their money is a great way to show them that they have money and that once they take it out it is gone. By physically seeing their money add up when saving they will have a visual representation of the effects of saving. It is a good idea to encourage children to count their money so they can familiarize themselves with the different denominations and start to appreciate the value they have. As children age, it can be a good idea to put their money into a bank account and set them up with a children-friendly account and app so they can see their money that way. After all, this is how you manage your money as an adult so it is good preparation.
Pocket money and financial reward
When your children start to undertake chores and take on responsibilities then it is often considered a good idea to reward this behaviour with a financial reward. It does not have to be huge amounts just sufficient to teach them that if they are prepared to work for something there will be a financial gain. This helps to teach children that money is earned. It may also promote a bit more help and assistance in the family home, a win-win situation.
Teach Financial Responsibility – Encourage open conversation
As an adult you will rarely discuss your finances with others and while this isn’t always a bad thing it can cause potential problems for people experiencing financial difficulty. It is important to allow your children to feel they are able to discuss money with you, how much they have, what they need, how much things cost and, importantly, how to ask for help if they need it. After all, even the most responsible of adults can find themselves searching for bad credit mortgages. If you can encourage your children to speak up and ask for financial assistance you may be able to help guide them in the right direction before it has any real adverse consequences.
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