Teaching your children good money habit is best started early, and can be one of the best things you impart to them.
When they ask for things, they should know that it costs money in order to get it. They should be allowed to get what they want just because they throw a tantrum or whine about it.
Yet the question remains: So, what lessons should you begin with?
So, here are 3 ways to teach kids about finances:
#1: Get them to use a piggy bank for the 21st century
The traditional one-slitted piggy bank doesn’t work anymore. For one, kids can’t see through and thus, they don’t trust whether the money is actually there. An interesting variant includes the Money Savvy Pig, a four-slitted piggy bank created by Money Savvy Generation. These 4 slots are divided into saving, spending, investing and donating.
#2: Play games that are finance-related
Instead of getting preachy with the subject of money, play a few finance-related games such as Planet Orange at OrangeKids.com. It is a fun way to educate kids about money much like every other aspect of education. In the game, they have to travel through the planets so as to earn money for gas.
#3: Allow them to manage their own money
One of the best ways to empower kids when it comes to money use is the practice of giving them an allowance. Make sure you keep your word when it comes to giving them that allowance on time or even how much. This could lead to them not taking their bills seriously when they grow up.