Time Tested Strategies to Teach Your Kids About Money

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No matter what type of financial background you come from, you can teach your kids how to handle money effectively. If you want to give your kids the best chance at success in life, it is important to show them as much as you can about money and how to deal with it. Here are some of the best time-tested strategies for you to use in the process of teaching your kids about finances.

Get Started Early

Many parents get caught up in the process of raising children and working, and then never take the time to teach their kids about money until they’re older. While they may not fully understand money and how it works until they get a little bit older, you can start imparting your wisdom when they are very small. Show them how you spend money at the store and how you get things for it.

Show them the different kinds of money that are available with coins, dollars, checks, and cards. Usually, cash is easier for them to understand, so you should start there and then work your way up. Make an effort to never talk about money negatively or act like it’s tough to deal with in front of your kids. This will just pass those same paradigms down to your children.

Teach Throughout Every Day Life

In order to teach your children about money, you don’t have to have a formal sit-down class with them every day. Just teach them with every day experiences as much as you can. For example, talk to your kids about what insurance is while you’re driving to the store. When you check out at the grocery store, let them participate in the process. If you have some kind of a financial issue to deal with, allow them to watch you handle it and explain what you’re doing. Kids will absorb a lot if you’ll allow them to experience things with you.

Don’t Always Bail Them Out

Everyone has made mistakes with money at some point, and your children are not going to be any different. Instead of bailing them out every time they make a mistake, allow them to sink or swim on their own. Obviously, you probably don’t want to let them file for bankruptcy on their own, but you don’t want to come to their aid every time they run out of spending money either. If they bounce a check, let them learn from it. These lessons are some of the most valuable that they can learn in life.

Show Them How to Pay Less

Spending the money that you have is a necessity when you need to buy things. However, you don’t have to pay full price for the things that you buy. For instance, get some couponsĀ and show your child how they work.

With the right coupon or online promo code, you could save quite a bit of money on the items that you need to buy. Your kids will see that it’s cool to save money and then start doing it themselves when they buy. Show them how to take advantage of sales, savings clubs, special promotions, and anything else you can think of to save money. Every dollar that they save is one more dollar that they could be earning interest on.

While you probably don’t have all of the answers when it comes to money, and you may not be a millionaire, your kids still have a lot to learn from you. If you will share what you’ve learned and what mistakes you’ve made, your kids might be better off.

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