Money Matters: Financial Literacy to Teach Your Kids

A Girl Dad’s Guide to Teaching Your Kids About Finances

One of the most valuable lessons you can teach your children is about managing their finances. It is not just about the dollars and pennies but rather, about lifelong skills, values, and financial responsibility. Most especially nowadays where almost everything is already available online, you can buy anything, anywhere at any time of the day.

That is why it is also important to impart the knowledge on its importance, and here are some key points to highlight.

1. Empowerment. This empowers your child to make smart financial decisions that decrease the chances of them getting caught up in financial distress in future events.

2. Responsibility. This gives them a sense of accountability by teaching them strategic choices and how to budget their money. 

3. Independence. This teaches them to be less dependent on other people for financial support and helps them stand up on their own when it comes to financial matters.

4. Smart Consumption. This helps them discern what their actual needs are versus what they only want and how they should prioritize their necessities.

5. Professional preparedness. This equips them in the labor force or in their future careers to know how to negotiate when it comes to salary, taxes, building their profiles, and taxes.

6. Goal setting. This prepares your children for future goals like preparing them to plan for their education, emergency funds, and even personal savings.

Here are some strategic methods for teaching your children financial literacy:

1. Begin at a young age. When you teach them something early on in their childhood it is most likely that they instill this within them. Thus, building a foundation of the knowledge and skills you are going to impart to them. You can start by teaching them what you are most likely to do in daily situations, like counting coins, or price discussion when doing groceries. Use examples where they can relate to it according to their age.

2. Implement an allowance system. Teach them the habit of budgeting and saving by providing opportunities like these where they are in control of the situation. You can start by providing them with money regularly and encouraging them to save up using savings jars, piggy banks, and such.

While you’re at it, teach them how to effectively allot these to certain purposes, like saving up for a toy or item they want, spending, and the like. This will also teach them how to budget and how to set their priorities straight.

3. Purchasing wisely. Let them engage in shopping, teach them how to compare prices, use coupons, and opt for quality over quantity. Also, highlight the consequences of impulse buying, not everything on sale or at a lower price is a need.

4. Make use of financial learning resources. There are a lot of good books out there to help your children get through this course. Of course, you should also consider their age. But as for teens, you could let them have the “Rich Dad Poor Dad” by Robert Kiyosaki. 

5. Introduce them to the basics. Teach them the basic principles of banking concepts and investing. Let that learnings out in the book and apply it in real-life scenarios!

Understand that this process requires a lot of patience and skill, especially when it can be technical at times and you dealing with children, or if not, teens. Maintaining encouraging surroundings and letting them adapt at their own pace will create a positive learning environment for both you and your kids, and will eventually expand your children’s understanding of their responsibilities when it comes to finances.

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