When it comes to parenting, there are many things you probably want your kids to learn. These things include good manners, school subjects, sports, languages, and other things.
This list also includes learning about budgeting and proper money management, as these skills are bound to have an impact on your kids' lives in the long run. Whether you have been looking up piggy banks or kids debit cards, we're here to break down the best options.
Keep in mind that all of these methods have their pros and cons and that the choice of method will ultimately come down to your personal preference. Without any further ado, let's get into how to best teach your kids about the behavior of budgeting and saving.
Teaching Kids About Money Management
Good money management skills are a crucial part of life. With far-ranging benefits that stem from financially responsible behavior, instilling this particular set of skills in your child will help them navigate what is usually considered to be a tricky and sensitive sphere of life.
While there is no doubt that this is a sensitive topic, there are multiple tools that are now easily available that can make this lesson much simpler and easier than you may think.
Budgeting and saving can be taught through a variety of traditional methods and modern tools. Thanks to the help of technology, you can now easily access apps that can do the teaching for you, while allowing you to monitor your kids' new habits.
Best Strategies to Teach Your Kids About Budgeting
As mentioned, there are several ways in which you can address this. The most usual and traditional method is involving your kids in daily tasks revolving around household finances.
#1 Include Your Kids in Household Budgeting
For example, before you go grocery shopping for your household next time, try engaging your kids in the activity. While compiling your grocery list, have them help you as you write down the family's needs and wants. This will help them understand the process.
In addition to understanding the process, you will demonstrate the value of money and the importance of stable finances to afford everything that your family needs. Once you're set to go, take the kids along for the grocery trip as a practical financial exercise. Consider giving them a smaller budget to work with on their own, further helping them to grasp money.
#2 Set up a Piggy Bank and Savings Goals
If you want to teach your kids how to save money, you can take it the traditional way and give them a piggy bank. In doing so, you can also set up a savings goal for them to reach.
The money that they put into the piggy bank can stem from allowances or rewards for completing simple household chores or academic ones. This is a method that most of us are already familiar with and one that requires no special preparation.
#3 Get a Budgeting App for Parents and Kids
If you live a busy life and your schedule is packed, one great option you can take is to download a budgeting app. Such apps provide kids with easily accessible and well-designed lessons on saving, spending, and even investing while giving parents a piece of mind.
Why not make use of technology by getting yourself one of these applications? There are several prominent and reliable apps/debit cards for kids available, such as BusyKid, that will allow you to reward your kids with money for completing their tasks while giving you insight into their spending and their financial lessons. This is a great option to consider.
Why Parents Should Talk About Money With Kids
Whether we like it or not, studies have demonstrated that kids usually pick up on the basics of financial behavior in early childhood. You might be surprised to hear that the age at which kids already grasp money-related behavior is as early as six, but that's just how it is.
With this being said, it is important to start involving kids in a variety of money-related activities that they can grasp as early as you can. While you will not be teaching them about things like inflation, you will want to get them acquainted with saving and spending.
After all, this particular skill is too important for all walks of life to not pay it the attention it needs. And remember: start as early as you can.