July 5, 2022 | Article | 4 min Personal insights
Easy Financial Education Exercises For Your Kids
Putting your children on the path to making good financial decisions is one of the best ways to set them up for success later in life. It is never too early, or too late, to teach them the value of money and how to save for a rainy day. Below are some suggestions to help get you started.
Teach Them to Budget
An allowance can be a great first step in showing your kids how to manage money. Practice makes perfect, after all. If they blow their allowance on a new toy and don't have enough left to get ice cream, that can actually a good thing. This can be a firsthand lesson on the consequence of overspending before it becomes a real issue later in life.
Show Them the Value of Saving
Your child wants a new toy that they don't have enough money for? Help them to save up! Decorate a jar with cut-out photos of what they are saving for to help remind them that good things come to those who wait. Once they have saved enough, take them shopping and let them pay the cashier. They will never forget how good it feels to work toward a goal and be rewarded in the end.
You can also begin to show them what's it like to manage an account and open a simple savings account. Take them with you to make deposits so your child can learn how to be hands-on with their money.
Let Them Earn a Little Extra
You expect your kids to clean their room, help with the dishes and do other daily chores. But, consider offering them the chance to make extra money by taking on another task that goes beyond their routine. Getting paid for extra work will help instill good habits and give them more control over saving and spending. If they are older, encourage entrepreneurship. Would they enjoy running a lemonade stand? Are they old enough for babysitting or a part-time job?
Have your kids donate a portion of their allowance to charity. It teaches them that money can be used to help people, rather than just for buying things. Remind them that it's not how much you give, every little bit counts. Let them pick out the charity that means the most to them. If they have a hand in the decision it will go a long way to leaving a lasting impression.