It’s official: back to school season is here! As the kids start settling into their school routines learning reading, writing, and arithmetic, it’s a good idea to teach them life skills as well, such as money management. Here are 5 financial lessons you can teach your kids this school year.
The Value of Saving
Whether it’s an allowance, birthday money, or chore earnings, teaching your kids to save at a young age could benefit them in the future. Here are a few ideas to get your child started on saving money:
- An good ol’ piggy bank
- A clear jar so they can see their progress.
- A kid-friendly savings account
Lesson learned: Money saved, grows!
Needs vs. Wants
School shopping could be a great teaching moment to demonstrate needs vs. wants: for example, a backpack vs. name-brand shoes. You could encourage your child to start learning the difference between an actual need vs. a nice-to-have as a precursor to smart money habits in the future.
Lesson learned: Smart spending starts with knowing the difference.
Budgeting Basics
Try giving your child a set amount of money to spend on snacks for the week with the goal of getting them to learn how to budget so that their money lasts longer.
Lesson learned: Planning helps to prevent overspending
The Power of Giving
Encourage your child to aside a small amount of money for fundraisers at school throughout the year or charities. The goal is for your child to learn that what may seem like a tiny amount of money could make a big difference for somebody else and that every little bit helps.
Lesson learned: Giving to others, even if it’s a small amount, can have a positive impact.
Setting Savings Goals
If there’s a toy, bike, or something else your child wants, encourage them to save up it rather than wasting their money on other things.
Lesson learned: Patience and discipline pay off.
The Takeaway
Teaching kids to be wise with their money at a young age could help them make smart decisions as adults. Today it’s a bike, tomorrow it’s a vacation, new home, or retirement plan.
