It’s never too early to start teaching your children about money and budgeting, and when else other than Easter is it better to teach your kids about not keeping all your eggs in one basket?
The importance of teaching financial skills
Teaching kids the value of money, how to budget, save, and prioritise spending, not only promotes positive money habits, but also accountability and personal development. We all know that kids are like sponges, so why not use this time to teach the importance of money management and develop a good set of financial skills at an early age.
Make saving fun for kids
Pocket money is an excellent incentive to help kids understand the value of money. Basic chores around the house, helping without being asked and good time management skills, are all worthy of a reward! Provide them with a fun money box and even a chart which could show visual goals that the child is working towards. You could also give them ‘bonus’ if they reach particular savings goals. Most financial institutions provide excellent banking programs for children with reward systems in place to promote regular saving. There is also a range of interactive kids savings apps for tablets and phones which can be an exciting way to teach real life financial skills digitally, keeping up with the tech savvy youth of today!
Teach them to budget
When giving pocket money to your children encourage them to budget their money and divide their allowance into a ‘saving’ jar and a ‘spending’ jar. You could offer to give them a monthly bonus based on what they have saved which encourages positive financial habits and rewards them at the same time. If your child requires a loan from you make sure you set up a repayment plan for them so that they understand the accountability of borrowing money. This will be an important skill for the future should they require a loan for a car, or mortgage for a house.
Involve your children when looking at your basic household budget, like the weekly grocery shopping, or teach them the importance of not overusing water or electricity. The primary school maths curriculum teaches children about notes, coins, what they look like and are worth so you can start to put this into context whilst out at the shops next. A common myth amongst children is that credit cards are “free moneyâ€. We wish! Explain to them how these work, that this form of transaction is ‘real money’ and it is all linked to your actual hard savings!
Finally, be honest with your children about money and lead by example. Try saving your loose change in a money box too. Be savvy when it comes to purchasing items, shop around for the best price and always ask for a discount.
We wish you and your families a safe and happy Easter from all of us at Debt Rescue.