Teaching Children About Money Through Family Finances
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 of the simplest ways to teach our children about money is in your own home with the income that you receive. Try having fortnightly or monthly meetings. Tell them what these meetings are about.
It all starts with the money that the parents earn first. Explain this to your kids that money doesn’t just grow on trees. Tell them that you get paid consistently over a week or month.
The income is then used to pay for different bills and necessities. Show your children what the money you receive is used for.
Below is a list that you could show to your kids for example:
1. Gas = $85 2. Electricity – $160 3. Food = $400 4. Clothes = $200 5. Transport = $200 6. Health insurance = $100
From the items above, outlay to your children what your income is being spent on. Then simply total the items above, then subtract this amount from your income and this would then equal how much you would save.
Explain to your kids what you plan to do with these savings. It could be paying off a loan of some sough for example.
If you explain it to them in this way, they will start to understand the value of money and will be more cautious on what they spend their allowance on.
Later on, as your child becomes older, give them a bit of control on how the household finances should be divided. Let them suggest what should be done with the money. Encourage them to think about how the family could save more. For example a simple way to decrease the electricity bill is to turn off the lights in your house when no one is in the room.
By pro-actively teaching your children about family finances, you are setting them up for a brighter future by enhancing their financial mindsets with concepts and ideas that they can use later on in their own families one day.
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