Although adult life is filled with many everyday challenges and objectives, one of the most difficult ones – and, at the same time, one of the most commonly praised and romanticized – is raising children. Starting from taking care of a newborn, fragile baby to arguing with an independent, rebellious teenager regarding their future as a street musician, the life of a parent is not filled with roses and at times may raise more questions than answers.
Although it’s not easy, parents always try to do what’s best for their kids and teach them about life all that they know themselves: the importance of education, good values, positive attitude, and much more. Unfortunately, what they often forget to teach their children, is practical, real-life lessons such as financial education. As a result, once the kids turn into adults, they don’t know how to operate in a fast-paced modern world.
Without a doubt, to prepare kids for life in the smartest way, it’s crucial to go beyond the traditional curriculum and mention the financial education topic somewhere along the way. If you would like to discover why it’s so important, follow our article:
Teach Your Kids the Value of Money
All too often, kids get expensive presents by their relatives for Christmas or on some other special days. In these circumstances, parents never raise the issue of cost or financial planning. As a result, parents end up having to pay for everything that makes kids happy in life: a car, a trip to the Bahamas (and all trips in general), a motorcycle, or an iPhone.
Of course, your kids may need these things to be happy, but it’s crucial to explain to your kids that you don’t print money, you earn them. So, if you want your child to be financially responsible and independent when they grow up, you must pass on some serious financial lessons so they understand how money works.
Another common mistake made by many parents is choosing the wrong type of financial education curriculum for their kids. At times, traditional financial education isn’t enough due to a variety of reasons: it tends to be archaic and boring; it just briefly mentions the basics of finance without providing any real-life examples; it only explores topics like budgeting and shopping but doesn’t go beyond them; it provides information that can be easily forgotten afterward; etc. If you want to teach kids about money & financial education, books outside school curriculum can be a great source of information; books like rich dad poor dad or a game of cashflow can help both parents & kids acquire real life knowledge about money. While gathering information, literature or books, one must be open to consume knowledge from diverse authors or websites beyond national boundaries; If you are wondering about language barriers then translation services can help you overcome that, here check out the best translation services.
Financial Literacy for Kids
React positively toward your kid’s questions about money matters. It will help them discover it all step-by-step and learn how things work in real life. The best thing is that you can present everything as a game instead of frustrating your kids with complicated economics-related facts.
Use real-word examples. For example, take a look at Oprah or Bill Burr’s net worth and show your kids how these talented people managed to generate different sources of income.
Cash Instead of Gifts
Children love getting little gifts. However, they also like having their own money that they can spend on something they like.
Giving money as gifts is a great idea! This way, your kids will have their own bank and become financially responsible. They will decide whether they want to save up or spend the whole sum on candies and online video games.
If your kids have their own money, they will not have to ask you or their grandma for pocket money.
Children tend to think that their parents’ salaries are unlimited and they will never run out of them. At some point, you need to sit down with your kids and tell them about an internet bill, medical expenses, taxes, or other bills that you have to pay on a monthly basis.
Take Them Through All the Steps
A great way to teach your kids about money is by involving them in your daily life and showing them what you have to do with your salary after getting it. You can show them how to create a budget for a month.
Otherwise, your kids won’t always be able to understand why you can’t buy them everything they want: a new game console, a high-quality pair of jeans, or a fashionable outfit.
Also, this way, they will learn to be responsible on their own for the things they want and not just expect you to hand it over instantly. Needless to say, this approach will take the extra pressure off your shoulders.
If you have established good communication with your kids, but your financial literacy skills are not good enough, consider enrolling your angels in financial courses. Your kids will benefit from learning about personal finance and how to manage money autonomously.
Summing Up: How Preparing Kids Can Help Them Succeed in the Future
So there we have it: what parents must know about raising financially fit children and why parents must ensure their kids receive financial education promptly from an early age for the best results. It takes time and patience, but you will definitely help your kids develop into independent adults if you follow these trends closely.
Be there for your kids, help them cope with money matters, and become financially independent.