COVID-19 has impacted so many aspects of our life. With schools closing and employees having to work from home, many families are facing the new normal. Many financial decisions have to be made almost every day; the entire ordeal is a lesson to both adults and their children.
The concept of financial independence is important for kids to learn. During the lockdown, parents can shield their kids from difficult situations or make this a teaching moment. Let your young ones know the value of money and how to spend it wisely through these simple methods:
Don’t skip the baby steps, especially with young children. Giving your child knowledge about what cash looks like can help them with understanding how much it is. Show different coins and ask them if they know the names of each one. Be patient if they don’t know it yet and explain the value of each one.
You can play a little math game and let the kids figure out how many coins they would need to form a certain amount, like a dollar. This is the best foundation for calculating.
Setting a Budget
Let your kids feel included when you’re shopping for some groceries. As you order online, ask them what snacks and drinks they would like. Show them the price and give them a specific budget. You’d be surprised at how clever they can be in making a list that includes all their goodies.
Sit beside them and share some small observations, like how one brand of cereal might seem more expensive than the other. This can initiate the thought process behind price comparison and learning how to maximize their budget.
Dreaming Big, Making Plans
Your kids may feel more inclined to learn when the lesson appeals to them. Open up conversations with them about their dreams and aspirations. Suppose they envision living in a big house or getting a car; enforce the need to work hard and save up money to accomplish those dreams.
This is especially important for young teens who may feel like their life is put on hold due to the pandemic. Invite them to read about the success stories of people from different walks of life. Inspire them to continue having hope and introduce possible career paths they may lean towards depending on their interests.
It’s best when you can be honest with your kids about your financial stability. Most children are able to recognize the situation by intuition or paying attention at home. Don’t underestimate their comprehension, and let them know if the situation is tough for you right now (to an extent that is appropriate for their age).
It’s also a good eye-opener for your kids that you’re able to share things with one another as a family. Persevere through whatever matter, including your financial situation, even if it can be hard.
Communicating different life lessons to young children helps them prepare for growing up. Even if it isn’t a formal class on Zoom, guide them towards financial independence and teach that no situation is hopeless.
Teach your children the value of money. If you’re looking for apps for building credit, check out Kiddie Kredit! This fun mobile app helps educate children on the credit system by completing chores. Download the app today!