4 Fun Ways To Teach Your Kids Good Money Habits

Money is known to be an economic exchange, and there are a lot of things that you can do with it. Aside from using it for trading goods and services, it's also essential to secure your future and to survive daily life. Needless to say, there is great importance on how someone can spend their money wisely. 

As a parent, educating your kids on financial literacy as early as possible is essential. It begins with teaching them the right ways to save and spend money. Many adults know how difficult it is to live paycheck to paycheck, and you wouldn't want your kid to live the same practice.

The saying goes, 'Start them young, train them right.' It's vital to teach them as soon as their mind can understand what money is. Having said that, establishing good money habits with your kids can be done in diverse and fun ways. Below are a few suggestions:

1. Let Your Kids Choose Their Piggy Bank  

Kids love toys. They even like to look at cute and attractive toy-like figures. So, one effective way to encourage good money habits is to use a piggy bank. Let your children choose their piggy bank, then prepare them to use it as young as they are. And as soon as they understand the value of money, you can start teaching your children how to save pennies and dollar bills in their piggy banks.  

You can tell your child to save some in their piggy banks every time they earn money. As soon as the container is filled, your child can deposit all or a portion of it into their savings account. Fortunately, there are savings account options where they can earn a little interest in the process, like the ones offered at Raiz. You can open a savings account for your child as soon as they're born.

A piggy bank can go a long way toward securing your child's future. Not to mention, it's a fun and challenging way for them to fill up. Teach them how to save money as their first step in establishing good financial habits. 

2. Bring Your Kids To The Supermarket

Children often imitate adults. For instance, you'd notice how toddlers seem to keep observing, following, and copying you. These are crucial times to set yourself as a good role model. Financially, adults have diverse ways to save money, and you can share your methods with your kids and let them mimic your good spending habits. A fun way to do this is by bringing them to the supermarket. 

You can let your kids tag along during your grocery shopping. You can give them an idea of your spending journey, like preparing a grocery list, bringing your own recyclable bag, and choosing reasonably-priced goods. You can even ask them to choose snacks within your budget. This way, they'll know how to choose alternatives to meet the budget. 

Try to explain how to save on goods. You can take advantage of coupons, sales, and discounts. Moreover, you can teach and explain to them how these systems go. No matter how often you talk to them about spending money the right way, what's important is as a parent, you should be able to walk the talk.    

3. Give Them Money To Spend

Another essential tip for kids is to tell the difference between wants and needs. This is an important lesson that they can carry as they grow older. It is essential to explain that basic needs, such as food, clothes, education, home, and healthcare. As for wants, these are the extra things that one would aspire to have, like a musical instrument, a hobby, gadgets, extra pair of shoes, and so on.  

One fun way to illustrate this life lesson is to bring your family to the mall. You can give them a certain amount of money that they can use to shop for their necessities. For example, if your child wants a new pair of socks, you can ask them if they need one or just want one because of the design. If it's the latter, you can tell them to use the money for other things that are much needed, like school supplies.

After explaining the basic essentials in life versus the things categorized as wants, you can ask them questions to test if they understand the concept of needs and wants. Furthermore, this is an excellent opportunity to explain the necessity of prioritizing what you spend money on.  

4. Reward Your Kids For Doing Chores

Every adult knows how difficult it is to earn money. Now, it's essential to make your kids understand that context. When you work, you are already setting an example to your kids about the value of money. 

While every parent would love to spoil their kids and give them all their wishes, it's not wise. A good practice is teaching them how to earn money to appreciate its value more. When done right, they may be able to save more and spend less.   

While giving allowance to kids is a common practice, it would be advisable to encourage your children to take part in household chores and reward them with their allowances. They may establish a sense of responsibility while realizing money's worth due to hard work. The key is to ensure balance in making them do chores they won't grunt about and compensate them with cash they need as allowance.      

Conclusion  

Money education takes time for a parent to impart to their children. You don't have to rush this process. Financial literacy requires practice, time, and patience. However, if you want your kids to spend or save their money wisely, it's best to train them young. Fortunately, there are fun ways to do this, as mentioned above. This way, they can learn how to handle money the right way.