Guestpost and Infographic by Busykids
The Money mindset is formed in the early years, and as we discussed with Dee even 2,5-year-old kids pick up adult habits and copy their framework. Financial literacy starts at a young age and money stories (abundance vs. scarcity mindset) are being written already by the time your kid turns 7.
For today’s post, our friends at Busy Kids will help us find ways to help our children acquire good money habits!
Teach Your Children Good Money Habits While They’re Young
It’s natural for parents to want nothing but the best for their children. This doesn’t mean giving them the best toys and the latest gadgets, but more on taking the necessary steps to prepare them for the future. You’ll want to lay a solid foundation that they can build upon to succeed and do well in life. This includes teaching your kids about money and, maybe, giving them their own kids debit card, so they can learn how to manage their finances first hand.
At What Age Should Parents Start Talking to Their Kids About Money?
As financial transactions become less and less tangible, it’s becoming harder for children to grasp the idea that there is actual money involved behind every purchase. This lack of physical context for money is one of the reasons why parents should start the money conversation with their kids as soon as possible.
Kids usually begin recognizing money at age 3. Once your children are old enough to know how to ask for things, start talking to them about what money is and where it comes from. When they’re a bit older, you can slowly introduce the basics of money management.
Kids who learn to appreciate the value of a dollar and develop good money management habits at a young age are more likely to become financially responsible and successful adults.
The Role of Allowance in Teaching Financial Literacy to Children
Most children’s interaction with money usually involves spending. So, when teaching financial literacy to kids, it’s important to stress out the relationship between work and money.
When you work, you get paid.
To drive the message home, consider giving your children an extra allowance for doing extra kids chores. Allowance also plays an important role in teaching the young ones how to handle their finances. They need money of their own to learn how to budget and make wise financial decisions.
The infographic below will help kickstart your kid’s financial literacy journey.
About the Author
Samantha Green is the Content Marketing Strategist for the MCA award-winning app, BusyKid, the first and only chore and allowance platform where kids can earn, save, share, spend, and invest their allowance. A mom of two, she enjoys spending time with her kids and reading books to them.
I would like to thank Samantha once again for giving us this useful infographic and a quick introduction to kid’s money management. I remember the days when my parents taught me about money through various forms as a child. Talking about money in a healthy way and experimenting with it certainly helped me as I was growing up! In my time, it was at least with physical notes and coins. Teaching about money with debit/credit cards must be a challenge for today’s parents for sure 😅!
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