As parents, you want your kids to grow up financially responsible. You know the stress finances can bring, and you want to protect your kids from experiencing this as much as possible. Therefore, it’s essential you take the time to teach your child about money. This might seem intimidating, especially if you haven’t been taught about money yourself, but you need to remember you are your child’s financial role model. With that, you’re the best person to teach your child about money.
An effective way to teach your kids is to know the most common mistakes to avoid, such as:
Not talking about money
A lot of parents find it challenging to talk about money to their kids. This is either because parents weren’t taught by their own parents, while others don’t feel confident enough to do so. However, when you don’t talk about money to your children, you’re setting up your kids for financial disaster.
It’s essential to include money in your daily conversations with your children. Keep in mind that it’s not important whether you have all the answers or not. Just talk to them about money and let them know what you know. Plus, it won’t hurt to research during your free time; this will be helpful for you as well.
Letting your child’s teachers take care of it
A lot of parents leave the financial topic to teachers. However, only six states in the US require a stand-alone personal finance course in high school; less than half of states require HS students to take a course that has personal finance content.
Keep in mind that these lessons, if they’re part of your child’s curriculum, will take place in high school. But financial habits can be established as early as 7 years old. With all of these things, you’re still your child’s best financial teacher; therefore, you need to take the time to teach them.
Giving kids money for nothing
You can only give your kids money without them having to earn it during special occasions, such as Christmas and birthdays. Other than that, it’s best not to give your kids money they didn’t earn so they’ll know its value.
Paying them for chores
Many parents pay their kids when they do chores around the house, but this isn’t a great idea, especially if you want to teach them about money. They need to know that everyone should pitch in around the house, which makes chores a part of the deal. When you pay them for doing the chores, you undermine the “feel-good” they get from doing it for love.
What you should do instead is to pay them for one-time projects beyond the regular chores, such as washing the car. By doing so, you help them appreciate the value of money while maintaining the notion that in families, you help out without expecting any monetary return.
Make Your Kids Financially Smarter
You are your children’s best teacher when it comes to finances. Therefore, take the time to teach your children about money and make sure to avoid these common mistakes.
Fortunately, many tools can help make teaching easier, such as apps and tools you can access online. Kiddie Kredit is one of the money apps for kids today. It is designed to educate kids on the credit system by completing chores. Download it today!