Introduce Your Kids to The Concept of Money
Nursery
Use A Clear Jar
A Piggy Bank is great, but it does not give them anything visual. When you use a clear jar they can see the money growing, giving them a sense of achievement. It also shows them that the smallest change can make a difference.
Stop With The Plastic
When we are out and about we all use our cards to pay for things and draw money out of the hole in the wall. However, if we do not explain that the money has to be in our account beforehand, their little minds will just think that when you want to pay for things the magic card will be limitless and they’ll be much more likely to follow it when they get older.
Show them how much things cost
When the little one is saving for something, try not to say ‘That toy cost $3’. Instead take some money out of their jar and show them how much it goes down, and how many coins make it up.
Tweens
Opportunity Cost
It is a way of saying ‘If you want to buy that toy, then you will not have the money to buy that game. At this age, kids should be able to make decisions and realize the consequences of their decisions.
Give Them Commission Not Pocket Money
Don’t just give them pocket money for doing nothing. Pay them a commission based on each of the chores they do around the house, like cleaning their room, drying the pots, or taking out the rubbish. This will help them understand that money is earned, not just given to them.
Teenagers
Bank Accounts
By the time they are a teenager, make sure you have opened up a simple bank account for them. Many high-street banks off this service which will help them manage their money and prepare them to manage their bank account as they get older.
Help Them Find A Job
Teenagers have plenty of time on their hands with school holidays. If they need more money, and if teenagers don’t need extra money, then help them find a part-time role while they are on school break.
Teach Them About Credit Cards
As soon as your teen turns 18, they will start to be hounded by credit card companies and salespeople in shopping centers. This is the time to teach them about APR and the best deals out there. If you have not taught them why debt is a bad idea, they could become another credit card victim.
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