Many parents start to worry when it comes to talking to their children about money.
Instead of being calm and comfortable, they start to think about all of their negative experiences with money and usually avoid the subject.
Even if you haven’t had the best luck with money up until this point, there’s no reason you can’t start teaching your kids about money early on.
Here are some of the best ways that you can teach your children about how to handle their finances easily.
1. Never Argue About Money
One of the biggest mistakes that parents make in regards to teaching their kids about money is arguing about it in front of them.
You must set a good example for your kids no matter where you are or what you’re doing.
If you want your kids to be frustrated about money in the future, then showing them your frustration should work fine.
If you want to teach them that money is simply a tool that they can use, and it’s not worth freaking out over, then stay calm and never fight about it in front of them.
If you have some serious issues to deal with and you’re afraid that you’ll get into a fight, wait until the kids go to bed before delving into them.
2. Use Matching Grants
Teaching your kids to save up for big purchases is a great lesson that will stick with them for the rest of their lives.
It may help them avoid accumulating debt in the future when they want to buy something big.
By using matching grants, you can accomplish this and be realistic at the same time.
For example, if your kids are young and you give them $1 for doing their chores every week, then this isn’t going to add up very fast.
Just to buy a toy that costs $15, that’s going to take almost four months to save up for.
Because of this, it might make sense to offer matching grants.
For example, if your child saves $5 of their money toward the purchase of a big item, you’ll chip in $10 when it’s time to buy it.
3. Reduce the Amount You Pay for Things
Paying retail prices isn’t a solid strategy when you want to save money.
If you teach your kids to shop wisely, they can save some serious money on their purchases.
For example, when they want some new shoes, help them find some coupon codes.
Once you find some good promo codes, they can buy their shoes for a discount online.
This will help their limited resources go farther in the long-term.
4. Use Cash to Teach
If you want to teach your kids about money, use cash instead of credit or debit cards.
When you give them cash to use, they’ll actually see how much they’re spending and how much they have left.
There’s something about actually spending cash that makes you realize you’re losing money.
5. Get the Right Kind of Piggy Bank
Using a piggy bank can be a good way to teach kids about saving.
A regular piggy bank can be challenging because the kids don’t know how much money they have inside, and all of it goes into one big pile.
With some of the newer piggy banks, you can see through them, and they have different compartments so that kids can allocate some to saving, some to spending, some to investing, and some to give away.
All of these strategies can help you teach your kids the basics of money.
They’ll be much more responsible adults because you took the time to help.