6 Ways to Teach Your Kids about Wealth
*This is a sponsored post on behalf of Kids Wealth. All opinions are my own and were not influenced in anyway.
Talking about money is a huge topic for us right now at home. We’ve been working hard to try and save to move out of our condo since our children, ages 4 and 6, are growing at leaps and bounds. Getting the kids on board though for this endeavor has not been easy though! There are things they want NOW and just don’t understand why we want to save for the bigger picture they are unable to comprehend.
I had so many mistakes along the way when it came to money. Money for me as a child and up to my mid-20’s was a mysterious thing that came and went with no real consequences. As a result, I found myself in a heap of debt that almost ended my marriage. It would be heartbreaking for me to see my children go down the same financial path I did.
1) Teach the basic idea of money as young as possible.
Items they want have a price tag attached to them. My children hate that my husband works long hours. We often relate an item they want to how many hours daddy has to work for them to have it. 9 times out of 10, they rather have daddy’s time instead.
2) Let them learn.
Kids make mistakes all of the time, just like do! It’s apart of growing up. If they want to spend all of their money on a toy you know is not worth the price tag, but they insist they want and need it, let them learn the hard way.
3) Money = Work.
Let your children earn a commission. Set chores and a price tag for each of those items. When they are completed, your child can be paid once a week. The money should then be separated into Save, Donate and Spend. A huge part of this is also learning that instant gratification is not a motivator for working harder and doing better.
4) Set a good example.
Children learn by what they see. What kinds of messages are your sending to your child?
5) If you can’t afford it, you can’t buy it.
It’s that simple. This is also a great way to teach children needs vs. wants. We live in a very materialistic time. It’s easy to get wrapped up in needing to have the next big thing or to impress our friends. Teach your children (and yourself) to live contently with what you have.
We just started using the Kids Wealth kit and it’s been a great tool for teaching my children the importance of learning how to be financially responsible. It teaches them everything I mentioned above, which has been a great way to tie in my own teachings into a fun and unique way. Games and activities were the best way for their age to start really grasping the concept of money in a hands on way.
This fun activity teaches children how to set GOALS and then work hard to EARN money. After earning money, it walks your child through the steps of using the money for saving, giving, education, investing and fun!