Lockdown can be the perfect time to teach your kids new skills, such as teaching them about money. Since offices and schools are either closed or working externally, you both get plenty of time to discuss financial management, rather than playing all the time. If you think your kids are too young to learn about money, you can not go wrong.
Things about money that your children should know
Children at a much younger age are beginning to understand that you can buy things using money because they see you doing it. What they do not see is your savings, budgeting or money management. Let’s look at three important money lessons you need to teach your children.
First things first, teach your kids the concept of saving. Make them understand why it is important to save money and how it will help them in the future.
To help them understand this better, give them pocket money every month, but get them to work for it. They can help you around the house and ‘earn’ by performing tasks.
When it’s their money, they’ll feel more responsible. Give them a goal to save at the end of each month and teach them how to achieve it by applying various savings techniques such as tracking expenses, saving incentives and acting as their creditor.
Next comes budgeting. This activity can be quite a challenge for adults, but you need to teach your kids about budgeting from a young age.
Involve them when budgeting your home financing and ask them to help. For example, suppose you are planning to buy an electric bike, encourage them to help you find the best deal, or look for a bike whose features are relevant to his / her needs and make financial sense. Ask for their opinion on where to allocate money.
They will be eager to be a part of an adult activity and end up learning an important tool in the process.
Kids understand that you have to spend money to buy something. What you need to teach them is practice to evaluate whether they need it or not.
Encourage your children to spend their pocket money on things they need. They learn to identify where to spend and what they can avoid spending on. This skill helps them tremendously as they grow.
In addition, they will feel a sense of pride in buying something with their money.
Bonus Tip: Playing games is one of the easiest ways to get your kids interested in money. Games like Monopoly help them understand all the above concepts in a fun way. So continue to host family play nights, your kids learning and enjoying a win-win situation at the same time.
This is a great start for your kids in lockdown. Make sure the lessons do not stop as time goes on. They will thank you one day for teaching them good money habits at a young age. Besides the economics lessons, the only thing that can help your kids stand out is quality education. With Child Education Calculator below, you can easily plan your child’s education expenses for his / her bright future.
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