Money habits can be instilled in children at a very young age. These habits turn into core behaviors that shape the way your child will handle money throughout their life. For this reason, it’s crucial to start teaching a few of these money lessons to your kiddos earlier rather than later.
Work With Your Budget
If your child wants to buy a Barbie and her Dream House, you’ll have to work with your child to show them how a budget works. They may not have enough money to spend on both items. If they do, they shouldn’t spend it all and be left with no savings. Teaching them to keep some money in savings and budget correctly is a great lesson!
Don’t Spend It Right Away
Once a kid gets a few dollars, they instantly want to buy a candy bar with it. Teaching them to be patient and think before they act will make them super savers and allow them to grow in other aspects of life as well.
Create a Wish List
Encourage your child to make a wish list of everything they want. Over time, they’ll get more excited to save in order to buy the items they’ve been working towards.
Let Your Child Make Decisions
Give your child a couple dollars at the grocery store and have them pick out which fruit they’d like for the week. You could also let them tap into their own funds and choose something to buy on their own. Allowing them to see they have control over their money and the power to spend it will teach them the value of the dollar.
Work Is Rewarding
Give your child an allowance for chores they do around the house. Showing them that hard work pays off will allow them to gain a strong work ethic.
Money Is Not Everything
There are many people out there who get caught up in the value of money. While teaching financial lessons to your child, it’s important to remind them to stay humble, as money doesn’t mean everything.
Teach a Choice
There are four choices when it comes to your money: spend, save, donate and invest. Explain these terms to your child and allow them to choose what percentage of their allowance goes to each of the four choices.
Raising your baby with fantastic financial finesse will allow them to go far as they age. Work with your child to implement a few of these lessons, so they can be on the fast track to saving success!
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