Teaching good financial habits to our children is important in life, which is why I’ve compiled these money lessons for children.
In a child’s eyes, money is something that just suddenly “appears” or becomes visible instantly just by asking their parents for it. Wouldn’t it be nice if it worked that way for adults as well?
When we needed the mortgage payment for the month, all we had to do was just ask for it, and we received? Sounds like a more modern version of the saying that money doesn’t grow on trees, right?
As parents, we teach our children many of the basic life lessons that help them grow, prosper, and function throughout their life. One of the biggest areas that are important to make certain that our children understand is that it is essential to have good money habits for their future financial path.
Taking the time to teach your child positive money habits is key to their understanding and appreciation of money. Here are certain money lessons for children under the age of ten that hey can learn at a young age. They can then use as a basis to build and grow on as they get older.
Money Should Be Respected
Seems odd to teach that to your child at a young age, but the sooner that they learn it, the better. Money can be great if used responsibly, but if not, it can cause many issues with bills and debts that people can spend years trying to bounce back from.
Saving for the Future is Important
Yes, a penny saved is truly a penny earned. When your child sees a penny and wants to pick it up, let them! More than likely, they’ll head straight to their piggy bank to save it for later, showing that they already have that saving habit instilled and started!
Don’t Buy Impulsively
We’ve all been there: that feeling that the money is literally just burning a hole in our pocket. The same goes for your children when they get cash. While it may be their money, it’s important for them to know that they don’t have to just spend it on the first thing that they see.
Always Check the Price
Price check the items that they want. While their research skills may be limited, this is where you can help them! If they’ve had their eye on an item for a while and are wanting to purchase it, help them understand the importance of knowing that there may be a better deal and option out there for them to find that exact same item at a better and more affordable price.
They Can’t Buy Everything They Want
You can’t always buy everything that you want. In life, it’s important to help your child understand the difference between needs and wants at a young age. The sooner that they can understand that, the better they will understand when trying to decide how to save up or spend their money.
Teach Them to Save
Teach them about savings options. Putting all their money in a piggy bank is nice, but why not show them options on how they can also deposit it into a bank account for their future use as well.
As with any lesson you want to teach your children, remember the three-step process for teaching toddlers and even older children.
Money Can’t Go Anywhere
If not spent, money doesn’t go anywhere. Maybe your child thinks that if they don’t spend money, it will go away. Help them to understand that once that money is theirs, it’s theirs until they spend it.
Contemplate Before Buying Anything
Communicate and talk through purchases before they occur. We all have that impulse to buy immediately. Take the time to talk through the pros and cons of making a purchase with your child so that they can see an example of the process.
Let Them Earn Their Money
Pay them for their chores. Paying them an allowance is a great way to teach them about money and how to earn it, how to save it, and how to use it wisely!
Show Them How to Budget
Let them be a part of your bill planning session so that they can see first-hand all the bills that have to be paid each and every month. While they aren’t responsible for them, it helps to make them aware that bills are important and something that even Mommy and Daddy have to budget consistently for.
Money Lessons for Children: Wrapping Up
Teaching your child money habits at a young age is important in helping to create a solid financial understanding for their future. Start by introducing some of the money habits listed above, and incorporate them slowly into their life.
Once they get an understanding of one of these money lessons for children, move on to other financial topics that they’ll need to know as they continue to grow older.
Help them be prepared and successful with their finances in their future by instilling them with great money habits when they are young!