Talking to your kids about money is like being their financial fitness trainer. You help them to achieve the goals they want while teaching them core values they need in order to build financially fit traditions.
Here are some valuable lessons for the fitness trainer in you:
Here are some valuable lessons for the fitness trainer in you:
- Give them control of money. Try taking a small amount of your monthly budget and giving them control over its spending. The results at first will probably be that they spend too much on frivolous things. But when they want other things, they will have to save.
- Teach them to save for money goals. Once they surpass the impulse buying stage, they’ll want to buy something larger. Show them how long it would take if they saved a certain amount to reach their goal. Make it fun! Creating a chart or visual of their savings to show the progress goes a long way keeping them involved.
- Teach them that reducing expenses makes goals come faster. Kids will quickly understand that spending less equals saving more. Reinforce this with a discussion about the decision they are making when they spend money.
- Teach them how money makes money. Set longer term goals for your kid’s savings. If they reach those goals, reward them by depositing a small amount of cash to their savings. Compare it to interest, showing them how their money can work for them.
Next week, my Brother Johnnie will be sharing more tips in part two of “Lessons to Teach Your Kids about Finance.” Until then, have a great weekend and remember…
The Mint Makes It First, It’s up To You to Make It Last
-Jainie-
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