Teaching kids about practical skills that are necessary for everyday life is a crucial point for many parents worldwide. Financial literacy always ranks high in terms of priority skills, alongside cooking skills, safety, driving, hygiene, studying, and household maintenance.
With all of these being important, it is no wonder that parents are investing substantial time into teaching their kids about financial responsibility and healthy money management. This knowledge in particular often has a far-reaching impact on parents and kids alike.
When to Start Teaching Kids About Money
Studies show that kids pick up on money behavior in their early childhood, most often by the ages of six and seven. They usually pick up these habits from their surroundings without realizing it. While any time is a good time to start, it is advised to start as early as possible.
As there are several ways to go about this, you might be thinking about how and where to begin. You might consider the traditional variant and immerse yourself as the teacher.
However, you can also consider turning to technology for a helping hand with mobile apps that provide a safe learning ground as well as a ground for practice. There are many options.
Involve Kids in Family Budgeting
Family conversations containing the topic of money are rarely considered a fun time. Realistically, they usually induce a bit of discomfort. However, this should not sway you from tackling the conversation. Know that it is completely normal to run into some roadblocks.
The easiest way to introduce this topic without making an official entrance is to engage your kids in the family budget. Whether you do your grocery shopping on a weekly or monthly basis, consider giving your kids the freedom and responsibility to join in on the planning.
For example, give them a set amount of money and have them write down a list of what they think you should purchase. Give them a basic idea of some crucial items and let them add their wanted items. The wants should go only to the extent that you are comfortable with.
This small but constantly present exercise will have them mindful of the difference between wants and needs. Plus, it will give them confidence in handling money and family responsibilities, as much as it will give them an understanding of real-life expenses.
Use Family Apps to Help Kids Understand Money
If you do most of your grocery shopping online or you just lead a fast lifestyle, you should take a look at mobile apps that will teach your kids all about budgeting, spending, and investing, the latter being common with modern investing apps for kids. With kid-friendly design and lessons, these apps are all the new best sources.
All of us nowadays are exposed to technology to lengths never seen before. You are usually always surrounded by it, whether with your cell phone, TV, car, work computer, or similar. So, why would you not make the most out of it for educational purposes too?
Depending on the age of your child, there are different apps to look into. The most widely praised app & debit card is called BusyKid. This app is renowned for the safety of data and for the success rate in teaching good habits and keeping the parents involved in the process. Additionally, it is centered around the idea of merging household chores with allowances.
With the low cost of $3.99 monthly or $38.99 yearly, you and your kid will get access to a well-designed and smart finance app that comes with a kid-friendly debit card. As such, it has different safety mechanisms to make sure that your kids are not exposed to any inappropriate content and leaves you with an insight into your kids’ new financial habits.
Use Traditional Money Saving Methods
Bring back the good old piggy bank and set out a savings goal for your kids or your entire family. Agree on a time frame, some basic rules, and have some fun.
For example, agree that no one will open the piggy bank before the goal is reached or before you’ve reached your deadline. This is an especially good starting point if your kids are too young to be using apps or difficult lessons.
Best of luck and remember to start as soon as possible and not shy away from this topic.