Knowing how to handle money with your future in mind is an important skill to have.
And as with most things, the sooner you start learning, the better equipped you’ll be to deal with it when you have to.
Here are 8 simple steps to teach your children and lead them to financial happiness…
Give them pocket money
If you don’t give your child pocket money, and instead wait until they ask for something, you run the risk of raising them to expect things to fall into their lap. Instead, give them pocket money appropriate to their age.
While the amount is up to you, a recent study found that primary school kids receive €10 on average per week, while secondary school kids get double that.
Be a good role model
If you don’t want your child to be reckless with money, then don’t model reckless behaviour.
Let the kids see you shopping in the sales, or buying own-brand products at the supermarket. Not only will it teach them how to make savings in everyday life, it will help them realise that big brands aren’t always the best way to go.
Bring them shopping
If your child never learns how much a bottle of milk costs, they’re less likely to appreciate it, so bring them with you when you go grocery shopping.
And when it comes to paying, you could also explain discount coupons, vouchers and special offers along the way. Kids are observant and will copy your behaviour as they get older.
Set them goals
If they want an expensive toy, don’t hand it to them on a silver platter. Tell them that they’ll have to save up their pocket money if they want it. That will teach them to budget, which is a vital skill in today’s world.
Play Monopoly
Make this a fun thing to do with the whole family. This will let them make mistakes before they really count.
Because you’ll be there, you’ll be able to guide them through those mistakes and help teach them what they could have done better.
Explain loans
While it’s tempting to forget about the time that your little one borrowed a tenner from you, don’t.
If kids get into the habit of thinking that loans will be forgotten or sorted out for them, they’ll never learn just how serious they can be.
Talk openly about money
If you’re having money worries, it’s best to chat to your other half about them in private. You don’t want to scare the kids, after all.
But at other times, it’s good for kids to hear money being discussed. This will help them to understand its importance in day-to-day terms.
Teach them about inequality
Kids often think that everyone in the world has the same things that they do. Teach them about the differences between the Western world and the poorer East.
Show them news items about inequality. This will help instil in them an appreciation for all that they have (and to realise that if they can’t afford that brand new iPad, it’s not the end of the world!).
