Teaching your kids about money should start early. Doing so can help build their lifelong financial success. We’ve put together five tips you can use to help your kids better understand money.
- Show them the Family Budget. Explain which expenses are needs (rent/food/mortgage/utilities) and which ones are wants (eating out/entertainment). Show them how much the family spends every month on food, gas, housing, and more. If they get an allowance, explain how that expense fits into the family budget.
- Let Them Watch You Pay the Bills. Most schools don’t teach kids how to pay an electric bill. By allowing them to watch you pay the bills, they’ll get a better understanding of where the family money goes, what things cost, and why people work for a living.
- Take Them Shopping. Experts say that teaching a child how to compare prices and values at the grocery store and other locations can help them shop smarter as adults. Instead of focusing solely on price, compare the cost per unit and explain that some items are less expensive when bought in bulk.
- Teach Them About Savings. If you’re comfortable with it, show your children the family savings account and retirement funds. Explain that savings can be the foundation for a solid financial future.
- Explain Credit Responsibly. Teach them about credit cards and loans, the cost of interest, and how to use credit wisely to boost their credit score and open future financial opportunities. To help them better understand credit use, show them how you use a credit card and/or share the information about your auto or home loan. Explain how much you will end up paying in interest for your loans and why it’s important to pay the full balance on a credit card every month.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.