Money is an essential part of living. It’s one of the first things a child learns to value. For example, imagine a toddler receiving a shiny quarter, their eyes light up, and they become excited that they have secured something special. Right from that moment, that child understands that money is essential.
You can start teaching your child about money as early as possible. They need to learn about money from when they are little to manage their expenses well when they become adults.
So, in what ways can you start teaching your children about money? We have listed five exciting ways below.
Consider a money education app
When you want to teach your kids about money, you can also choose from any educational money management app. For example, some investment apps for minors have the option for children to start researching, exploring, and learning about how to invest. Parents also have the final say and can check what their kids are learning – then they can approve the final investment and learn along with their child.
Take them to shops and get them involved in the process!
When you go grocery shopping and have your child with you, there is much opportunity to teach them about money spending. For example, you can get your child to pick out the products with you and calculate the final costs, then hand them the cash to give to the cashier. This will help teach your child about the value of money and keep them in the know about rising costs, how to find a good bargain, and so much more.
Furthermore, food prices are among the first to rise when there is inflation, and when you get your child involved in the weekly shop round, they will also notice the price fluctuations. Therefore, you can shop around for a bargain by looking for the shop with the best two-for-one deals so you can get more for your money.
You might also like: things to sell at school to make money.
Teach them the idea of saving for items they want
If your child wants to purchase something that costs a lot of money, you can teach them to save for it. Instead of handing them the money and buying them what they want, you can teach them how to save for those big purchases. Saving for big purchases is exciting; you can do so much with your child to get them interested.
For example, you can get them to earn money through house chores and doing extra bits around the house. Then, they can save their earned money until it is enough to make that big purchase.
Give them the responsibility of a saving account
A savings account for your child is an excellent way of teaching your child about money. For example, perhaps your child received some birthday money, and you kept it in a piggy bank. Then, you can go with your child to the right bank and open their first savings account. The process should be fun; they can deposit all their cash into the savings account.
Then, as a teen, your child might start earning some money through a part-time job, and you can give them the responsibility of saving a decent sum from their earnings into the savings account.
Consider a custodial investment account for them where you still get the final say
A custodial account allows parents to set up an investment account for their child. The adult controls the account until the child becomes of a certain age (18 or 21 years, depending on the state).
There are many advantages to opening a custodial account for your child. We have listed a few below.
- There are no income or contribution limits – you can invest as little or as much as you want.
- There are tax-free options.
- The child can access the money when they are 18 or 21 and use it for anything from college fees to purchasing a house.
A custodial account is a great way to set your child up for life and plan well ahead for things they will need later on as they become adults. College fees are costly, and many parents have used their custodial accounts to help their children have the option to go to college.
In closing, there are many ways parents can help their children learn about money. With so many different options for educational apps – parents can be intentional about teaching their kids how to invest and save money for the future.
Whether your child is a toddler or a teenager, you can start doing some of the things mentioned in this article to teach them the value of money. Lastly, it is never too early to teach your child about money; even a toddler can start to understand that money is a valuable and essential part of life.
