Teaching Your Kids about Money [4 Ways]

By Sarah Carlson, CFP®, CLU®, ChFC®

As you raise the next generation, we're sharing our top four ways for teaching your kids about money. If you haven't started laying the foundation for financial literacy with your children yet, this is the perfect time to start! Here are some fun, stress-free ideas for getting everyone involved with money.

1. Encourage Kids to Take Action

Committing errors is one of the best ways a youngster can figure out how to follow through with something. Furthermore, with regards to cash, you have the ability to establish a protected climate for your children to try, commit errors and, with trust, become their comprehension - without costing their monetary future.

Give your kids a small allowance each week as an instrument to show the power of saving versus spending. Urge them to make a financial plan and make objectives. Before long enough they'll get familiar with the worth in saving their stipend for a major buy later as opposed to spending it imprudently when they get it.

Remain engaged with how your children are spending or saving. Assist them with talking through their disappointments, answer their inquiries and give direction when required.

2. Discuss Your Family Budget

In the event that your kids are somewhat more seasoned and have the basics of money down, think about requesting that they engage in laying out and adhering to the family's personal financial plan. This can be an educational encounter for your kids, and it's something you can allude to consistently. At the point when your youngster needs to go out to eat consistently, remind them about your financial plan.

Keep in mind, this ought not be distressing for your kid. In the event that you feel really awkward sharing your entire family financial plan, start with just a few easy categories like entertainment, dining out and groceries. You could in fact make it a challenge to have your children find imaginative ways of getting things done inside the family spending plan.

3. Turn it into a Friendly Competition

On the off chance that your family as of now has some kin contention, why not play into it with a cordial rivalry?

Transform budgeting and saving money into a game. Give your shopping rundown to every kid and let them scan the web for coupons and deals. Offer a compensation for whoever tracks down the most savings, or put anything that is saved from the coupons into their bank account.

If you have older kids, they may be interested in stock market simulation games, which are available online. On the off chance that you're not knowledgeable in the market yourself, this could be an entertaining activity to do as a family.

4. Emphasize the Importance of Earning

Knowing how to save, invest and spend money is important. But to make the lesson really hit home, consider having your kids earn a little money of their own. Losing money that was handed to them doesn't make as big an impact as losing money they earned. 

If they're old enough to work, consider encouraging them to find a part-time summer job or seasonal gig. If they're younger, find chores for them to do around your house or for other family members, and pay them per task. The willingness to work hard and be rewarded is one of the best financial lessons you can pass on to your young ones. 

Conclusion

At the point when you can, celebrate and encourage your kids to develop into significant members of the community. Discovering small, stress-free ways to instill financial life lessons now will pay off sometime down the road. In the event that you're experiencing difficulty finding the right way to talk to your kids about money, ask your financial planner for help. Our Spokane financial advisors can assist you with beginning the discussion and fabricate the underpinning of positive cash propensities for your children.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.