As an adult, you may have had tough learning moments when it comes to financial management. It could have been when you failed to pay your rent on time or got too deep in credit card debt. To keep your children or grandchildren from making the same mistakes, you should begin teaching them financial literacy as early as possible.
Studies indicate that by the time we are seven, a lot of our fiscal behaviors are instilled. If good habits are not established during this formative period, our kids or grandkids may struggle to learn proper money management when they grow up.
So, what is the best way to impart these valuable money skills in a way that sticks?
First, try to give them an allowance for work they do around the house. Making them earn money gives them a sense of ownership over what they have to spend. In addition, making them pay for the things they want, such as a new toy or candy, with their own money will teach them the value of saving and spending wisely.
In addition, try to make saving and spending into a game. Worrying about the numbers and chores won’t excite them about the lessons you try to teach them. If you want your kids or grandkids to retain the information you teach them, making it exciting and fun can help you do so. Teach them board games like Monopoly or Payday. Games like these can help them make the mistakes they need to make in order to learn, but instead of getting into credit card debt, they simply fall behind in the game and learn to try better money management skills to win the game next time.
And finally, open a bank account for them to start using financial tools to get them to save sooner. You can also utilize a variety of new apps that are designed to provide kids with a safe allowance with a debit card.
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