Money is an essential part of your daily life; from buying groceries, to paying for fuel. Helping children learn good money habits at a young age will put them on a path to becoming financially literate, which gives them a head-start to their adult lives! Here are 5 tips on how to teach your kids good money habits.
1. Model good behavior
It’s known that kids watch and mimic their parents’ actions. Set a positive example for your children by demonstrating the smart spending and saving habits that you want them to learn.
2. Create opportunities to earn money
Children need their own money, so they can learn how to make decisions on how to manage it. Paying your kids an allowance for chores completed accomplishes just that, while teaching them the value of earning their own money.
3. Involve them in your budgeting
“Money doesn’t grow on trees” is a concept that children should learn early on. Show them how you create and track your monthly budget to live within your means. With their own money, they can monitor how much they have coming in and going out.
4. Instill the importance of saving
Encourage your kids to save by gifting them a piggy bank or savings jar. Help them decide how much to save by discussing their short-term goals and future life events.
5. Teach them how to invest
Saving is a pillar of responsible money habits, but it’s only a small step towards building wealth. Encourage your children to grow their money by teaching them how to invest. With Go & Grow, you can create an account for your child and invest on their behalf until they are old enough to open their own account.
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