Teach your children about money, Start from an early age.
It’s very important for children to understand how to deal with money, budget and debt —and what the consequences of their financial decisions could be.
According to reports by researchers at the University of Cambridge, money habits in children are formed by age 7. It is therefore, very important that parents take advantage of everyday teachable money moments and start teaching their children about money at a very early age.
Learn how you can teach your children good money skills with these three fun activities.
1. The Money Jars
Create three jars and label them “Saving,” “Spending” and “Sharing” and every time your child receives money, whether for allowance or as a gift, get them to divide the money equally among the jars. The spending jar can be used for small purchases, like sweets or candy. The money in the sharing jar can be donated to a cause or shared with someone you know who needs it. The saving jar however, should be used to save for more expensive items or birthday gifts. If your child has a bank account, you can also get them to deposit the money from their savings jar into their account at the end of every month.
2. The Money Goal
Have your child to set a money goal for something they would like to buy. It could be a new outfit, a book, toy or game. Make sure it’s not an item that is too costly or one that they won’t be able to afford in months. The aim of this activity is to teach them good financial skills. If the goal is too pricey, it may become frustrating and hard to understand. Set them up for success by helping them set a goal that isn’t too expensive, one that they can very easily afford in a short time and also, by giving them a regular allowance to help them meet these goals.
3. The Money Choices
When out shopping, give your child some small amount of money and have him/her make choices about what fruits or vegetables to buy for the household so as to give them the experience of making choices with money. For example, give a 7 year old €3 and get her to choose which fruits to buy for the week