How financially confident would you be today, if the school system and your parents had taught you lessons in good money habits, starting at a young age?
Our parents did the best they could to teach us good manners, respect for others, and family values.
And the school system was there to better our knowledge in math, language, geography, history, sports and so on.
But the topic of good money habits was completely left out, for most people.
In everyday life, kids learn more about spending every time they see their parents pull out the wallet to pay for something.
Kids learn a lot just by watching their parents.
Some parents I have spoken to feel just because they carry debt and do not have enough savings, they are not in a position to teach their kids about money.
I remind them, it is the many little things they do that kids will remember and they learn best through experiences.
Here are three creative, simple, fun activities I shared with these parents, and you can use the same:
A stroll to the Bank: Go together to the neighborhood bank branch. Let them see you making deposits more often, encourage them to interact with the teller, to ask questions, and also open their own bank account. I remember looking forward to my bank statements as a kid and it taught me the concept of savings and earning interest. Back in the days my parents did not have the pleasure of online banking, watching them deposit cash and cheques gave me more experiences in “money going in”.
Trips to the grocery store: Get them involved in making a list, then going through the grocery store flyer that comes in the mail. This will teach them to plan ahead to save on a grocery bill. Planning is the key lesson here. At the grocery store help them to find the best value. Work with them, encourage them make decision so they may enjoy the learning experience.
Get them 3 piggy banks or 3 jars: I still remember receiving my first allowance. I asked for an allowance so I could spend it, but once I had it I was compelled to hold on to it. I learned to save some and spend some. Later on when I got more involved in charity work at the church, I felt good about giving some away. You can teach your children the power of making sacrifices and decisions with their own money. For a start, label 3 jars or piggy banks – SPENDING, SAVING, and DONATING.
It is best to guide them, not decide for them. Let them learn from their own mistakes. Some mistakes are a teaching opportunity. Allow them donate to a cause they feel connected to (not your cause). And praising their accomplishments, however small, will make them feel proud.
Gift your children with these experiences. They will have a positive relationship with money, when they step out on their own.
Let them surprise you. You will find they learn more than you expected.
Content Disclaimer
Material discussed is meant for general illustration and/or information purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.