4 Major Money Lessons To Teach Your Kids

It’s never too early to teach your kids how to master their money.

Here are four simple, easy to understand, money savvy tips to teach your youngsters.

1. Create a budget

Let’s be realistic, your kids aren’t contributing to any of the expenses just yet, but leaning how to budget effectively can have a positive impact in the long run. Lay the foundation for them to be able to manage their hard-earned cash in the future.
Start off by giving them an allowance. If you have three kids, use their ages as a starting point to make it fair (your five-year-old will get R5 a week). Now that they have money to put away (even if it’s a small amount), teach them how to put money away for saving and spending. You could make two different money boxes for them to pop their coins into.

2. Money doesn’t grow on trees

So now that your kids have put some money into their ‘savings’ box, they want to treat themselves to a chocolate.
Although in your mind it’s a waste of money, you need to let them make the decision whether to buy the chocolate or not. If they don’t have any money left after that, they will see how quickly their money disappears, and how important money is for the things they need. Don’t give in when the tears start welling up. This is a simple lesson they have to learn. Every time money is spent, there is a consequence, or sacrifice that follows.

3. Learn to earn

Teach your kids that if they want more money, or a higher allowance, they must work for it. Get them started on simple chores like washing up. Money is not just given to a anyone, it is earned. Although they might fight the idea in the beginning, that Xbox won’t buy itself. Hard work pays off, and it can be really rewarding when you get to treat yourself.

4. Save to spend

You want to teach your kids that the money they put away in their ‘savings’ box, shouldn’t be used the next day. Saving money should be a long-term goal. If they plan on using the money in a few days, it must go into the ‘spending’ pile.

You will need a lot of patience and understanding to get your child to understand the importance of saving. It is not an interest of theirs, but they will thank you later.

Article source: https://www.thecashlorette.com/millennial-money/money-lessons-for-children-to-master/ 

October 16 2017 By Noble Wealth Management Financial Planning