Financial Guidance: Raising Money Smart Kids Can Pay Dividends For You

Raising money smart kids is one of the most important responsibilities for any parent. Kids who are exposed to the important financial concepts at an early age are more likely to make smarter decisions later in life. Don't rely on your children to gain the knowledge at their school.

  • Understand needs vs wants: This is one of the fundamental concepts to understand. Explain to them how you make these kinds of decisions everyday with your spending.
  • Know where money comes from: Kids often don't understand that money is limited. Share with them how you work to earn a salary. You can use chores and allowances to reinforce this concept.
  • Saving for a goal: Learning to wait before buying is an important habit to teach. If they have a big ask for something, have them work and save to get to the goal before making the purchase.
  • Good shopping habits: Grocery shopping is a great teaching moment if you shop with a list and use coupons. Involve your kids in this activity and show them how you avoid impulse buying because you stick to the list.
  • Basic budgeting skills: One of the best concepts is to use the "spend, save and share" philosophy with all of their allowance and gift money. This helps them learn how to budget all of the money they receive.
  • Making good money decisions: The sooner you let them make their own money decisions the better they will be at making future decisions. Start early and let them learn from mistakes.
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