All parents want the best for their children. They want them to do well in school, be well-liked among their peer groups and also develop strong relationships and social circles. As parents, we know that one day, our little child will head out into the big world on their own and we want to give them all the right tools to succeed. It’s our responsibility to instill good money lessons in them. Kids should be given the right tools to lay a foundation of financial success and a debt-free life. This is why teaching children about money management is very important.
Where to start? It’s as simple as ABC, here’s how:
Go grocery shopping
Take your kids to the grocery store and let them help you with the budget. Point out the different prices of products and the various brands available. Ask them questions like “Is it better money for value to get this or that? This way, they’ll learn value and get to practice their number skills.
Real money = real life lessons
Start with simple activities like shopping trips and buying groceries. Let your children handle the money and count the change. This will help them to feel confident handling money and also teach them the basics of finance.
Start a business and encourage a young entrepreneur
Encourage business ethics through school fetes and church bazaars by helping your child build a small business they can manage. (Plus side: extra pocket money!)
Teach them the benefits of paying bills on time
This is very important, especially for older children. Use this as an opportunity to let them know about good and bad credit.
If you don’t have the money, you can’t have it
When your child grasps this concept, it will help build a solid and lasting understanding of how money works. This will also help them to understand why a debt-free life is important and set them up for a future that gives them financial freedom without the debt-stress.
Make money fun!
Learning about money doesn’t have to be daunting. Set up reasonable goals with built-in incentives. Ask questions about their choices and challenge their thinking and guide them when and where they need it always celebrate their successes and encourage them after a set-back.
Set a good example
Want to ensure your children live a debt-free life but struggling with your own finances? Why not consult one of our professional and friendly debt counsellors and get on top of your debt. Contact Meerkat today and start your journey to a debt free life for you and your family – the perfect example for the next generation!Get in touch