With yet another new financial year about to start, it’s a good time of the year to start having the ‘money talk’ with your kids. Young children learn money sense through examples and experience and parents are in the best position to get them onto a good start with saving and spending habits. There are many ways to teach your kids about money sense, apart from just giving them a piggy bank and setting them up with a bank account. Here are 6 tips to help your kids be more money savvy.
The art of thrift shopping
There are many great treasures that can be found in garage sales, second-hand vintage shops and online. Part of the charms of thrift shopping is that you’ll often be able to find gems that are unique and much cheaper than in a regular retail shop. Your kids will enjoy rummaging through a second hand book shop or a vintage clothes shop to find something a bit out of the ordinary. Over time, your kids will develop an appreciation towards thrift shopping as a great way to save money and reusing and recycling used goods.
Encourage them to do volunteering work
Integral to teaching your kids about financial literacy is the understanding that some people have more than others and that those in more fortunate state should help those with less. You can encourage your kids to join community groups such as girls scouts Girl Guides and Boys Brigade that participate in regular fundraising activities that contributes back to the local community.
Encourage them to work to earn pocket money
Working to earn money is a big part of the adult life so it is important that as parent, we start introducing what it means to ‘work hard for money’ to our kids from a young age. If your kids are still too young to have a part-time job, you can assign them simple tasks around the house such as helping to wash the family car, walking the dog, washing dishes to earn pocket money.
Set a family savings goal
Adults with poor saving habits often trace back to a lack of saving habit as kids. When your children are still young, help them to implement small saving goals that are realistic and achievable. Go around the family and asks what each member want to save for and then agree to a common weekly, monthly or yearly goal. Short-term goals can be something like saving to buy your kid’s favourite comic book series or saving for a hobby - first horse riding lesson . Long-term goals can be an overseas family trip
Lead by Example
As parents, you must model savvy spending habits for your kids to follow - the next time you take your kids grocery shopping, explain to them why you make certain purchase decisions over others. Spend time to educate your kids about your own spending, saving and giving strategies to help them develop their own. And most importantly, don’t over spend on your kids to give them the impression that everything in life comes easy.
Learn by Playing
If your kids are tech savvy and spends a lot of time online, introduce them to online games that teach money skills. Many credit union and bank sites have games and others activities, like printable colouring pages and quizzes. Of course there’s always the good old fashion board games like Monopoly and Life. Even though it deals in fantasy, such games would help hammer in ideas of earnings, savings and loss.