Good money habits to teach your kids
1. Model good money habits
As a role model in your kid's life, it’s important that you set a good example of how to manage, spend, and think about money. This first step to being a good role model is to take a look at what your money strengths and weaknesses are. Openly discuss, in an age-appropriate way, how you spend and save with your child. Discuss money decisions that come up, like if you decide to hold off on buying something, budgeting for bills, and working out how much to save. This will help your child learn good money habits and apply your reasoning to situations that they encounter.
2. Give your kids opportunities to earn money
We all value earned money more than given money. Giving your kids the opportunity to earn money in exchange for tasks is a great way to teach them the value of work – think chores around the house or helping others out. You might even find they start negotiating their ‘wages’ by offering to do more jobs for extra money!
3. Encourage saving and delayed gratification
Teaching your kids good habits around saving money can be tricky when all they want to do is spend, spend, spend! But it’s worth the difficulty of teaching them because it’s an important skill to have, and could save them in the years to come. You can start early with this money habit by encouraging them to save up for a bigger purchase, like a toy they have their eyes on.
Short-term goals like this get them started towards long-term saving goals. Creating positive messaging around saving also helps to teach your kids about saving money. Statements like “saving feels great”, and, “I love putting money away to look after my future” can build a positive picture around saving that helps teach your kids that saving is a good money habit!
4. Give them responsibility for their money and let them make mistakes
Although it’s tempting to keep control over your child’s money, it will teach them good money habits more quickly if you give them the power. Mistakes will happen, and when they’ve blown a few months of savings in a few hours, it’s important to not bail them out. Sitting with the discomfort of not having money to do the other things they want is a great way to learn the consequences of poor money management! And whether it’s not being able to afford to hang out with friends or having to return the expensive jumper they’ve bought, they’ll slowly form some good money habits.
Are you having difficulty getting on top of your own finances? The team at MyFinance are always happy to help! We can help you get ahead of your next big purchase with a personal loan. With great rates and repayment plans to suit your budget, a MyFinance personal loan can help make your dream a reality.