It’s only natural for parents to dream the best life for their children, but aside from ensuring they grow up in a healthy environment and receive a high-quality education, it’s important to fill in the gaps by teaching life-changing skills your kids wouldn’t get from school. One of the most critical pieces of knowledge that can impact the rest of your child’s life is their money habits, so raising a financially literate kid is sure to set them up for success in more ways than one.
Adults know how difficult it is to maintain a healthy relationship with money; that’s why people everywhere struggle with their finances in some way or another. Starting your kids early and teaching them the basics of healthy financial management can help them become financially literate.
What are Simple Financial Concepts to Teach to Your Kids?
1. One of the best ways to improve your kid’s financial understanding is to teach them their wants versus needs. Exploring necessities for school, food, clothes, and their desires like toys or electronics can reveal real-world decisions they have to make, so you can help them prioritise their needs and dedicate enough savings to buy the things that make them happy.
2. Open a savings account for your kids and take them with you when you’re making small deposits, so they can learn the simple ins and outs of banking. It’s also the ideal platform to educate them about earning interest or saving enough to afford purchases they desire.
3. Use kid-friendly mobile apps that make money management an enjoyable experience. For example, Kiddie Kredit provides an app that focuses on different ways money can impact their lives—from budgeting, investing, and more.
4. Explore financial opportunities with your kids by giving real-life examples of how their decisions will influence their life. Investing in one area may close one door but open a new opportunity in another, so let your kids get a feel of this by letting them decide to make their own small decisions. For example, you can give them $10 and two choices: would they buy their favourite ice cream or snack?
The Bottom Line: Helping Your Kids Reach their Financial Goals As They Grow
Everyone needs to be responsible with their finances as money can impact your life in more ways than one, so teaching your kids how to improve their understanding of their finances can help them grow up to have healthy money habits.
Do You Need Financial Help from the Best Accountants in the UK?
Handling finances can be challenging for anyone, but it doesn’t have to be a confusing experience if you work with the right accountant who can help simplify the numbers for you. We believe that financial literacy should be learned at a young age to develop a sense of responsibility when handling money.
Our mobile app Kiddie Kredit aims to educate young children on the credit system by making math, budgeting, and financial management a fun, engaging, and compelling experience! Check out our app today and see how we can help you build a financially free future for your children.