As Brits, we often avoid talking about money. Yet did you know that children start to learn about money from early childhood?
Although it can be uncomfortable talking about it, by discussing money with children, you can have a positive impact on their finances later in life, which is especially important given the rise in living costs.
If you’d like to set your children up for financial success, here’s how to teach them good money habits.
Get children familiar with money
The first step of getting your children good with money is getting them familiar with it. Although we are heading towards a cashless society with contactless payments overtaking cash, it’s a good idea to get children to handle different notes, coins and cards.
Instill a habit of saving
To encourage your children to save their pennies, try to reinforce the idea that saving money is a positive thing. For example, by explaining how saving money is good and how you like to save, they are more likely to follow suit.
You can also show them the benefits of saving. For example, if you’ve recently bought a new car, why not explain to them that you could only get that by saving.
If you’d like to take things one step further if your child is old enough, why not open them a children’s savings account so they can learn about how good saving money can be first-hand.
Create opportunities for them to earn money
To help teach children the value of money, it’s a good idea to give your children the opportunity to earn some money. Whether you get them to clean their room, empty the dishwasher or walk the dog, by giving your children opportunities to earn, you’ll set them up for future success.
Emphasize the value of giving
As well as earning and saving, it’s a good idea to teach your children about giving. By teaching children about giving, you are helping them make a habit of generosity later in life.
Teach children how money can grow (not on trees!).
Saving money is a habit and life skill that goes a long way. But it’s important to teach children how they can grow their wealth too, and make their savings work harder. As such, it’s good practice to teach children about stocks, shares and different types of savings accounts. That way, they’ll be able to make their savings go further.
Although talking about money can be difficult, it’s important to teach your children the value of money, saving and investing. By doing so, you’ll ensure they are set up for financial success in later life.
So, what are you waiting for?
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