Image From: Nastia11 from Getty Images/Canva Pro
Article By: Kelly Kirk-Xu & Emily Stevens
There is no denying that kids are much more mindful of spending their own money than they are with spending yours. It can be tempting to micromanage every step of your child’s spending habits, but there is no denying the benefits of letting your little one learn about money through trial and error. However, the value of money can seem less real when that money is coming from mom or dad’s wallet.
This is simply because the child cannot build a visual about the value of each dollar they are spending. When money seems to “grow on trees,” why would a child even think about being mindful about their purchases? There are a few great ways to teach your child the value of money by allowing them to earn their own in ways you see fit.
The benefits of granting your child the opportunity to have their own money can be endless. However, giving them free rein in handling that cash can be intimidating. Many parents worry that allowing their kid to spend their money freely will cause them to pick up bad money habits.
No, worries! Walter the Vault is here to give you some tips on helping your child build healthy money habits while letting them spend their own money!
Tip #1: Have them earn their money. When your child works for the money they have, each dollar will seem all the more valuable to them.
Tip #2: Include them in family finance discussions. We are our child’s best teachers. At first, including your little one in money talks may seem taboo, but it can benefit them greatly! As they watch you navigate your finances, they will learn how to navigate their own, as well.
Tip #3: Help them set their own money goals and build a budget. If your child has been dreaming of seeing the newest superhero movie in theatres or of purchasing that toy dog they can walk themselves, help them set goals to afford it! Ask them to consider how much it costs, how much money they need to save each allowance day, and how long it will take to save up for their goal.
No matter what you decide to do, giving your child the chance to make their own money decisions will help them learn to master their money!