Father’s Day is around the corner, and what better occasion to teach your children about the importance of money? After all, you should understand the important role that you play in their lives, particularly in their formative years. Hence, training them early on will help them reap the benefits of financial prudence later in life. Here are some ways in which you can teach your kids all about the basics of money on Father’s Day.
⮚ The value of money—The first lesson to teach your kids is that money is valuable. Help them understand that money buys everything at home, puts food on the table, and pays for the essentials that they cannot do without.
⮚ Budgeting, saving, and money management—Encourage your children to set up piggy banks, each with a fixed goal in mind. This will teach them to save money for various objectives. They will automatically understand how important it is to save for things before going to buy them.
⮚ Talk to your children about how money is used—Honestly, talk to your children about how you manage and use your money. Chalk out the monthly expenses and how you deduct money from your income to meet them. Also, show them what and how you are saving for future things like vacations, other purchases, retirement, and things that they want and need.
⮚ Start a bank account for your children- This Father’s Day, take your children along to set up bank accounts for them. This will help them understand the financial system and the value of saving money for the future.
⮚ Make charts—You can create charts with your kids that detail all the ways in which they can use their allowances. This may include buying their favorite games and toys, books, snacks, and even giving to the less fortunate.
⮚ Start making them earn their allowances—In a smart but subtle way, encourage your children to actively participate in household allowances and chores. This can be tied to a sizable portion of their pocket money or allowance. Throw in bonuses for good deeds, accomplishments, and extra work done.
⮚ Teach them to measure the prices of everything- Teach them how to read and understand pricing labels. Also, tell them about comparing prices and ultimately going for something that’s the best fit depending on the value proposition on offer.
These are some simple yet fun ways to introduce the concepts of money, budgeting, and savings to your children from an early age. This will ultimately make them more financially self-reliant and aware in life. Also, keep their allowances or usable money in a jar or box somewhere at home. This way, they will not have to ask you for it. It will also teach them how to responsibly manage this money without it running out.
