It’s the Best Time to Teach Kids About Money, Excerpted from Cuinsight.com, April 2020 by John Petit
Kids don’t generally have a lot of deep knowledge when it comes to money and how to manage it. What they do know, they’ve probably learned from their parents. If your kids haven’t had a lot of money lessons yet, now is the perfect time to teach them. If you’re going to be stuck at home, you may as well make that time productive! Here are three things that all kids should know about money.
Earning is the Way
You’ve probably heard the phrase “money doesn’t grow on trees.” Truer words may never have been spoken. You can’t live your life waiting to win the lottery. You also can’t sit around waiting for a rich, old relative to die and leave you a fortune. An allowance in exchange for doing chores is a great way to teach kids about earning money and the value of hard work.
Saving is Smart
An easy way to get your kids to learn how to save is to give them a goal. Don’t just give your kids whatever they want. The next time they ask for a new video game, give them a savings goal and have them pay for at least half of it.
Spending is Necessary
While it’s important to save your money, it’s also important for kids to understand that money is meant to be spent. You can’t live your life without spending money. But when learning to spend, they need to learn how to spend wisely. Teach your kids about coupons, sales, and other ways to save. Saving and spending may seem like opposites, but spending wisely may be the best way to save.
To learn more about money management, visit our Campus Federal Financial Fitness Center.