As such, as a savvy parent, you should use this power to inculcate money shrewdness in your kids. Below are six effective ways to do just that.
1. Simulate a market environment at home
Create a market environment at home that mimics a real world market. Besides basic allowances, provide different ways for your kids to make money. For instance, you can pay ten cents for every 5 weeds plucked in the backyard, or for tidying the house, helping with chores, keeping their rooms clean, etc.
This way, your kids will learn to make as well as to value money. Also, institute fines for playing truant, misbehaving, coming home late, etc., to strike a balance.
2. Incentivize money accountability
Insist on accountability for all money given to sharpen your children’s planning skills. Go a step further and incentivize accountability by offering bonuses for detailed expense records. Above all, practice what you preach since kids learn more through observation.
3. Involve the kids in money decisions
When it comes to overall budgeting and other family money-related deliberations, involve the children so that they can learn how budgeting and money works at advanced levels. Furthermore, they will know that there is no exemption from prudent money use at any stage in life.
4. Inspire the desire to make money
When one of your children wants something, inspire the inclination for making money by proposing that if he/she makes a certain amount, you will top it up and purchase the desired item.
Also, you can act as a bank by offering interest for money saved with you to simulate how money can work on your kids’ behalf.
5. Share educational money stories
Share stories that implicitly convey the benefits of astute money use. Do not shy away from tweaking popular tales to teach important money lessons. Using extended family members as characters is advised to give the stories a personal touch – like a story about your great grandfather, or his uncle for instance.
6. Cultivate a saving culture and transition into actual investments
Open up savings accounts for your kids and offer to match half or full any amount saved. This way, you will promote a saving culture. Also, as time goes by, get your kids into real life investment by guiding them in putting down money on company stocks they fancy. You can boost their stakes using the “match saved amount” tactic repeatedly.
Do not procrastinate – start implementing the above strategies right now to give your kids sound money knowledge and a sure financial footing. Share with couples, friends, and aspiring parents on social media to help nurture a money-smart generation.
- Digital LCD Display automatically keeps track of savings; Easy Twist-Off Lid for coin retrieval - when coins are removed or if you want to slip in a bill, there is a simple +- function to report the amount removed and keep a correct tally of your savings!
- Great for all ages! Kids will love watching their savings grow and adults will value having a landing spot for their change!
- Accepts all US coins including: Pennies, Nickels, Dimes, Quarters, Half Dollars and Dollar Coins
- Hand-painted ceramic piggy bank.
- Adorable bow on head.
- Includes dry erase pen for DIY personalization
- This "MONEY SAFE" guards your personal stuff. Use the sale to store things like your paper money, play jewelry, baseball cards or playing card. The coins slot at the top lets you use the safe as a piggy bank.
- Automatic Paper Money Scroll: Put the paper money on the Scroll, it can be rolled into the machine automatically.(But it doesn't work if the paper is too old or too soft)
- Rotary Switch: Enter the correct password then the light turns green, the ATM can be opened. (You CAN NOT rotate the switch if the password is wrong)
Last update on 2017-10-17 / Affiliate links / Images from Amazon Product Advertising API