When your child is old enough to understand the basic concept of money, it can be beneficial to teach them some healthy financial habits. Children are not born with the knowledge that everything in life has a cost and that, if they don’t have the funds, they would not be able to purchase the essentials needed to survive.
While the day that they fly the nest and become self-sufficient may be many years off, any teaching about financial responsibility needs to start at a young age. Even a younger child can learn to save and make their money grow. While they cannot increase their income through official employment, they may still earn money through household chores, pocket money, and even children’s saving accounts or a junior stocks and shares ISA.
It can be far too tempting for a young child to spend any money they do receive on sweets and toys, without thinking about the future. It is up to you, as their parent or guardian, to instil healthy spending and saving habits.
No Such Thing as a Handout
In your life, you don’t receive money for free. You have a job, go to work, and, in return, are given a wage. The same can be implemented in your home. Getting children to partake in age appropriate chores is a great way to teach children that they need to earn their money. This can be done with children as young as two years old, as any task given would suit their capabilities.
Go to the Shops
Taking some different coins to the shops and seeing what can be bought with the money you have is another great way to both understand the value of money and improve mathematic skills. Using coins is also more beneficial as it can help stop a child thinking they can spend whatever they like if they pay with card.
Buy it Yourself
Getting your child to buy smaller items, or wants, themselves is another way to instil the value of saving for something. Rather than buying that new video game or chocolate bar for them, ask them to instead save up any pocket money. This can also help your child to respect their possessions more than they may have previously, as any repairs or replacements would have to come out of their budget as well.
Teaching a child patience when they claim to need or want something can go a long way. Impulse purchasing often ends in guilt or regret, so teaching your offspring to wait can be especially useful. Waiting a couple of days to buy something that is not a necessity can help them to really think about
the item. Is it something they genuinely want? If, after a few days, they still want it, then go ahead. If not, then you’ve just taught them a valuable life lesson.
No matter their financial background, all children need to develop a healthy relationship with money. This relationship starts in the home, with the influences that you give them.
This is a collaborative post.