You know what they say — the early bird catches the worm. This saying holds true in so many aspects of life because when you prepare for something, it can be extremely beneficial in the long run. That's why it's a pretty good idea to start talking about finances to your children even at a young age.
Even for adults, the concept of money can be quite intimidating, but helping your little ones familiarize themselves with financial literacy early on can be highly beneficial for them. Why? Many adults today made the mistake of overlooking the necessity of financial literacy, making them have a negative relationship with money — this is something that we should help our children avoid.
But since money is a tricky topic, many parents struggle to find the best way to share financial knowledge with their children. However, what you need to remember is that your goal is to help them raise self-awareness when making financial decisions and the consequences that could happen.
If you're eager to start teaching the concept of money to your kids, keep reading!
Tip #1: Help Your Kids Earn Through Rewards
The great thing about children is that it's relatively easy to teach the concept of responsibility and discipline when you associate it with chores and daily tasks.
With that being said, teach your kids the concept of earning by rewarding them after their chores. Remember, you don't have to give them a huge amount — start with a dime, and they'll quickly learn that with every task they do, they can grow their earnings.
Tip #2: Introduce a Piggy Bank
Now that they're "earning" money from the chores and tasks they're doing, you can easily teach them the concept of saving. Every time you "pay" them for completing certain tasks, teach them to put their money aside and save it in their piggy bank.
Besides that, it's also smart to educate your kids about financial goals. This way, they can save up their earnings so they can buy the toy that they've been eyeing, the book they've wanted to read or to splurge on a new pair of kicks.
When they have their piggy bank, and they're growing money, ensure that you have a deadline before they can open it up and count how much they save.
Tip #3: Help Them Learn the Difference Between Needs and Wants
After introducing the concept of earning and saving to them, the next thing you want to teach them is differentiating their wants and needs to help them make purchases.
When you educate them about their wants and needs, remember that you should trust their instincts and help them make a decision. This will help them become financially responsible with the money they saved up and realize the consequences of their actions.
Tip #4: Empower Them to Take Credit and Pay It Off
The thing about money is that it's more than just saving and earning; you also need to teach your kids how to take credit and to pay for it. As your little one grows older, they'll need to take credit in various forms, such as an educational loan, personal loan, home loan, and more.
Preparing your kids to take credit as early as now can help them manage their finances and pay off debts with ease. Also, this will give them a better relationship with money since they have a better understanding of taking what they need and paying it off within a deadline.
Fortunately, you can build credit for your child by using Kiddie Kredit, a mobile app that's designed to help educate children about credit and completing chores.
The Bottom Line: Kids Can Learn the Concept of Money Even at an Early Age
Teaching the concept of money at a young age can help empower your kids regarding financial relations. Financial knowledge is crucial for their development, too, so it's best to take the proper steps to educate them and encourage them to be more responsible and disciplined about their money.
Why Should You Use Kiddie Kredit?
If you're looking for a way to educate your children on financial knowledge, consider using Kiddie Kredit.
Kiddie Kredit is a mobile application designed to teach kids about the credit system. Starting them young and teaching them everything they need to know about money can be extremely beneficial for their development.
Try our mobile app today!