Metro Manila, Philippines
Metro Manila, Philippines
Do you think there are easy ways to teach your kids about financial literacy? Do you think your kids can understand the financial literacy? Are you willing to teach them at the young age? Do you think financial literacy can help them to manage their money and expenses? Do you think this parenting tips can help you to teach your kids about financial literacy? Do you think a daily activities can help your kids to become more interested and impactful about financial literacy? Let us know!
I know it will not be easy to teach your kids regarding on the financial literacy since you as an adult is having a hard time in managing your own financial life. It is because maybe you are not aware about it and not able to learn it at the young age. That is one of the importance of teaching financial literacy at young age. To prevent them to become unaware on the important things in their life, money. According to Investopedia, “Research shows that many financial habits are set by age 7”. With that, we are able to teach our kids since they already have a basic knowledge about financial life. It is much easier for us to determine the strategies that we can use to teach our kids much easier and them to learn in an easy ways. In some point of your life, you maybe experience the consequences of having a poor money management that leads to financial struggles or challenges. “Research, including influential work by David Whitebread and Sue Bingham of the University of Cambridge, suggests that many of our financial habits are set by age 7. If good habits aren’t formed early, it becomes harder and harder to point your offspring in the right direction.” It is a reminder that as parents, we should be able to guide our kids on developing themselves. We should encourage them to develop their way of thinking and no just character development. Because it is also important to be aware on the simple things, and be able to develop our thinking skills. How does a kid value money also reflects on their parents because kids are usually following or copying what the adult do. So parents, it is much better to become a role model for our kids. Besides from teaching them, we must show them that we also following our teachings and learnings.
According to Investopedia, there are 7 steps you can use to make your kids in the right path. First, make them earn their own allowance. I know that they are still kids and you need to provide for them, but you also need to make them experience how to earn money. How? You can provide for them but if they want something, you should make them think that need to work hard to get it. By giving them commands or favour with the exchange of money. An example of this is giving them household chores that they need to do with the exchange of money and save it to buy whatever they wanted to buy. Besides from helping them to become responsible in house, you can also help them to realize the reality in earning money. That it is not easy to earn money, you must work hard and be responsible. Second, Encourage part time gigs. Although studying is making them busy and tired, you can still encourage them to take part time gigs. Basically it is just a part time job that is not that hard just like other works. It is to make them feel how to work for them to earn money. Also, having an experience on working field can also make them realize the importance of money management. With that, it is much easier to convince them in doing the right thing for their financial life and to avoid being in debt or experience financial problems or challenges. Third, have them contribute to purchases. Your kids must know that you are not able to buy or purchase everything. Because there are times that you only include things that are necessary or essential for you and your family. There are times that you experienced shortage and being in debt that makes the situation even worse. Make them realize that those things are not good for them. Fourth, make it a game. You can teach your kids about financial literacy using a game. A literal game like monopoly can also help them to be knowledgeable about financial terms. Or even making a game for them to enjoy learning financial literacy. Fifth, open a bank account. It is okay to save from a usual piggy bank but it can also have disadvantages like you can still get the money from it and gas lighting yourself that this is for emergency or limited time to purchase anything. Besides from having an assurance that your money is safe and secure in a bank, you can also get interest that can help your money to grow. You can get your kids with a friendly debit/credit cards. This is no need to provide for your kids savings since you are teaching them about money management. Sixth, get them started to stocks. Making them aware about investment can help them to emphasize the importance of money management. Well, it is too young for them to understand the investment. But there is nothing wrong in making them aware and knowledgeable about the basics of money management. Seventh and last, have honest conversation about money. It is one of your role as a mother, to teach your student or friends about financial literacy. It is to help them to become financially literate and to achieve financial success. Well, your kids are still young but do you think it is much better to make them unaware about money or finances? Is it okay for you that they are struggling about financial literacy when they turned adult? No one wants that, teach your kids now!