How You Can Raise Your Kids to Treat Money Right

Teaching your children the importance of valuing and managing their money wisely is an underestimated yet vital aspect of parenting.

But, of course, the problem is, how do you do that without making it sound like an economics lecture?  If you’ve ever caught your little one trying to buy a unicorn with a shiny penny, then you’ll know the importance of instilling some financial wisdom early on. So, let's take a look at some quick and effective tips to get your youngsters respecting their dough!

1. Start with the Piggy Bank (or the Dinosaur Bank!)

Ah, the classic piggy bank! Or if your kid is more into dinosaurs or superheroes, there's a bank for that too! Introduce them to the concept of saving by feeding their bank regularly. Once it's full, make a big show of counting it out and deciding together how to spend or save it.

2. Pocket Money with Purpose

Rather than just handing out pocket money, attach it to small tasks or chores. Not only does it give them a taste of the real world (sadly, money doesn’t grow on trees), but it also teaches them the value of hard work. And if they spend all their money on sweets in one go and end up with none for that toy they wanted, well, that’s a lesson in budgeting right there!

3. Adventures in the Used Kingdom

A trip to the local charity shop can be just as exciting as the toy store. Plus, they'll soon realise that their money stretches further when they opt for something that's had a previous owner. Oh, and be sure to practice what you preach, whether it be buying a used Audi or second-hand clothes, to save yourself money too because, not only will it be good for your wallet, but it will also set the right example for the kids.

4. Play Shop Till You Drop

Kids love playing shop. And, in the midst of all the giggles and pretend shopping, there’s ample opportunity for learning. Set up a mini supermarket at home with prices on items. Give them a budget and watch them figure out what they can and can't afford.

5. Set Savings Goals

Got a kid who's eyeing up the latest toy? Help them set it as a savings goal. Draw a fun chart, and every time they add to their savings, they can colour a bit more in. It's a tangible way for them to see their progress and learn patience.

6. Open a Kids Bank Account

Many banks offer accounts tailored for the young ones. Take them to open their very own account (preferably one with a great interest rate). They'll feel all grown-up and will learn the ropes of banking from an early age.

7. Teach Them to Be Bargain Hunters

Ah, the thrill of a good bargain! Next time there's a sale, take your child along and explain how much money can be saved when buying items at a discount. Let them calculate the savings; it's maths they’ll actually enjoy.

8. Introduce Them to DIY Magic

Why buy when you can make? From creating homemade birthday cards to baking treats instead of buying them, it’s a fun way to save money. Plus, it's always a hit! Everyone loves a sprinkle of personal touch.

9. Show and Tell with Bills

Without overwhelming them, occasionally show them a household bill or two. Explain how services like electricity cost money and how turning off unused lights helps save. They’ll soon be the ones reminding you to switch off that hallway light!

10. Explain Needs Vs. Wants

In a world full of ads and flashy new things, it's essential for kids to understand the difference between what they want and what they need so that they do not end up spen ding their money more furiously than necessary. A new toy might be a want, but school shoes? Definitely a need. It’s a balance, and teaching them early will set them up for smarter spending decisions in the future.

11. Give to Charity

Introduce them to the concept of giving. Whether it's donating toys they no longer play with or setting aside a bit of their pocket money, it teaches them that money can also be used to help others.

12. Holidays on a Budget

Next family holiday, give your children a small budget for activities or souvenirs. It’s an adventure in money management, teaching them to prioritise and make choices based on what they can afford.

13. Get Them Involved in Meal Planning

Remember when you thought money was for toys and sweets? Kids don’t always understand the cost of living. A fun way to teach this is by having them help with meal planning on a budget. Plus, they might be more inclined to eat those veggies they picked out themselves.

14. Chat about University and Future Dreams

It's never too early to chat about the future. Talk about university, careers, and other big dreams. It can be a fun conversation that subtly instills the importance of financial planning.

15. The Great Lemonade Stand Venture

Encourage your child to set up their own lemonade stand or bake sale. This mini-entrepreneurial venture will teach them about investment (buying ingredients), profit, loss, and customer service. Just make sure to sip on some lemonade and munch a cookie or two for quality control!

16. Historical Money Talks

Take a day out to a museum, especially one with exhibits on old coins or the history of trade. It’s a fantastic way to blend history with the evolution of money. They'll get a feel for how value has changed over time and how bartering once ruled the roost.

17. The “Wait a Bit” Rule

Instil a waiting period before big purchases. If they're eyeing a pricey toy, make it a rule to wait a week. Often, after a bit of time, the urgency to have it fades, teaching them impulse control.

18. Have Fun with Apps

There's an app for everything these days, including ones designed to teach kids about money. Apps like "PiggyBot" or "iAllowance" make tracking chores, pocket money, and savings a game.

19. Introduce Them to Compound Interest

Now, don't let your eyes glaze over! With a fun online calculator, show them how their savings can grow over time if left untouched. It’s like magic but for finance.

20. Eco-friendly Equals Eco-nomical

Teach kids the value of repurposing and recycling. Not only is it good for Mother Earth, but it also saves pennies. Turn it into a fun project: maybe those old jars can become groovy new pencil holders?

As you can see, reign your kids to treat money right is not all that difficult, but it will require a commitment from you in order to do so, You need to remember though, that this is definitely something worth doing for the future of your family finances and the pros[erity of your children anc grandchildren, The better educated they are, the more likely they are to make good financial choices in the future.