When is the right time to start teaching your kids about money, and how to save it? If you wait until the time they’re a teenager, they might have missed out on opportunities to learn important financial lessons. According to U.S. News, children can understand the concepts of saving and spending from as early as age five.
Ultimately, as a parent, teaching your children about money is probably one of the most important gifts you can ever give them. Smart money management will set them up for a lifetime of stability and freedom, and who doesn’t want that for their kids?
There is unfortunately a significant lack of financial education in our country, which makes it more important than ever for parents to teach basic money lessons to their children.
Although some financial topics might seem challenging, you might be surprised what your children can absorb.
For example, most children can understand the feeling of greed, especially in terms of not wanting to share toys. However, they need to understand the consequences of greed. Explain to them what happens when one person hoards all the resources. Teach them to be giving instead of greedy.
Budgeting is one of life’s most essential skills, right up there with learning how to do your own laundry and make a simple dinner. When you teach a child to budget, or better yet, have them learn from your budgeting skills, you will give them a lifetime of financial security.
It’s important to teach your children how to save for large purchases. Not only will it give them time to decide if it’s something they really want, but they can get the satisfaction of paying for something that they worked so hard to save for.
