The early years of our child’s life are the years that they learn the most. This is because children truly are sponges. Everything they see and learn about in these early years will stick with them into adulthood from the way they form relationships, their eating habits, and, yes, how they look at money.
You can introduce good money habits in small, simple ways when your child is young. Planning your monthly budget? Invite your little ones to listen in on the money decisions being made for the household! Going grocery shopping? Grocery shopping is the perfect opportunity to explain why some products are more expensive, how you choose to spend your money, and how coupons work!
Once your little ones hit the age where they can begin chores, allow this to become an opportunity for them to learn about earning and saving their own money. Introducing an allowance will give your child some control over how they handle their money. You can talk to them about the importance of saving and choosing what to splurge on. Having their own money will give your child the opportunity to make decisions, make mistakes, and learn from the consequences.
It doesn’t matter what kind of situation you are in regarding your own finances. As an adult, you have had years to make good and bad decisions about your own money, giving you the chance to teach your child from your years of knowledge. Did you make a money mistake at a young age? This gives you great teaching materials to share with your child! Did you make a money decision that paid off- big time? That is yet another great opportunity to share your experiences with your child!
Unfortunately, your child won’t be receiving much information about financial literacy at school. Because of this, you are one of their most important teachers in developing healthy money habits. You don’t have to develop full on lesson plans for your child to teach them financial literacy. Including them in your own money-related decisions will offer them the perfect opportunity to become a money master!