How early can you teach your kids about the importance of financial literacy? For parents with young children, teaching them about the basics of financial literacy may not have crossed your mind that much. However, during this time in their lives, you can teach them many things that they can carry with them through adulthood. Therefore, teaching them about finances done creatively to ensure they can understand and enjoy the process is a good idea. How can you do this?
Discuss the Basics of Financial Literacy
It’s as straightforward as this—if you want to teach your kids financial literacy, you need to start with the basics first. After all, financial literacy starts with basic skills that should be taught to children at a young age.
The basics of financial literacy are: distinguishing between needs and wants, making smart money choices, and setting goals.
Financial literacy basics will help you provide a framework that you can establish in the household. No matter what state your finances are and the type of family you have, you can teach these principles easily. However, you may need to adjust some of your behaviors, which is part of the challenge.
This is also why many parents discover more about themselves when they discuss money behaviors with their children. In turn, parents can make better adjustments to money management.
The good thing about this is, you can work together with your kids as you go through the process of teaching them about the basics of financial literacy. As your children grow older, they will start to appreciate the experience of learning more from you.
Have a Conversation About Money
Talking about money that can be as simple as telling them a story about the first time you got paid can go a long way. You can start with that; from there, you can explore other money-related topics.
Another effective way to have a meaningful conversation about money and investment is to share the mistakes you made. Passing that information to your kids will help them handle money better.
Regardless of the kind of story you share, aim to engage in an ongoing conversation with your children about money. Even if you have a toddler, you can have an open dialogue about finances before entering kindergarten.
Why Start Now?
Many parents don’t realize this, but children become aware of money from a very young age. It usually starts with seeing transactions, media exposure, and their wants.
Introducing your children to the language of money as soon as they’re aware of it, which is usually when they’re toddlers, is the best idea. During this time, you will teach your kids to save for goals to make smart money choices in the future.
As parents, you want your children to be financially stable the moment they are making their own money. Therefore, starting as early as now will go a long way. Fortunately, there are many tools and apps that can make the learning process more enjoyable for you and your children.
Kiddie Kredit is one of the best money apps for kids. Our app is designed to educate children on the credit system by completing chores. Download it today!