These days all grown-ups go through our daily routines of paying our bills, putting s shelf over their family and putting food on the table. Parents want the best for their children and want to ensure when their kids grow up they will have a brighter financial future than what they had.
One great tool of teaching our kids about money is through our own family finance. You can choose to have monthly meetings with your children about this topic. Explain to them in these sessions what is happening.
Parents receive and income first of all. Educate your children about where money comes from and that it doesn't just fall out of the sky. Explain that you get paid every week or fortnight for example.
Money that is earned by the parent is used to pay for different bills and items in the house. Try communicating to your children about how money is used.
For example you could use a simple list like the following:
1. Mortgage = $500 2. Electricity = $200 3. Clothes = $300 4. Entertainment = $50 5. Birthday presents = $200 6. Cell phone bill = $40
As you can see from the above list, you are laying what each bill/item is going to cost. At the end of this, you will see how much is being paid to this. Subtract this from the income and this would equal savings.
Explain to your children what these savings will do. For example, it could be use to pay off the mortgage quicker, used to replace a household appliance that is breaking down, or saving for an end of the year family holiday.
Explaining this to your children will show them what the cost of items are and how money needs to be used wisely.
When your kids grow older, start giving them more responsibility over finances in the family. Ask them what the family could do to save more money, it could be going out to less entertainment outings such as the movie cinemas for example.
By doing this, your children will be set up for a potentially greater financial future as they can see what money can do and not do for them.
One great tool of teaching our kids about money is through our own family finance. You can choose to have monthly meetings with your children about this topic. Explain to them in these sessions what is happening.
Parents receive and income first of all. Educate your children about where money comes from and that it doesn't just fall out of the sky. Explain that you get paid every week or fortnight for example.
Money that is earned by the parent is used to pay for different bills and items in the house. Try communicating to your children about how money is used.
For example you could use a simple list like the following:
1. Mortgage = $500 2. Electricity = $200 3. Clothes = $300 4. Entertainment = $50 5. Birthday presents = $200 6. Cell phone bill = $40
As you can see from the above list, you are laying what each bill/item is going to cost. At the end of this, you will see how much is being paid to this. Subtract this from the income and this would equal savings.
Explain to your children what these savings will do. For example, it could be use to pay off the mortgage quicker, used to replace a household appliance that is breaking down, or saving for an end of the year family holiday.
Explaining this to your children will show them what the cost of items are and how money needs to be used wisely.
When your kids grow older, start giving them more responsibility over finances in the family. Ask them what the family could do to save more money, it could be going out to less entertainment outings such as the movie cinemas for example.
By doing this, your children will be set up for a potentially greater financial future as they can see what money can do and not do for them.
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Money Management Kids Start developing your child's financial skills. Make it a responsibility with educating your children about money. Make a positive contribution to your son or daughter's future now.