How to teach your kids money skills in 5 easy steps
Date posted: Thursday, September 4, 2014
Teaching your children financial skills early makes good sense. Or should we say cents (insert, dad joke).
Just as it’s important to teach them good manners, to ride a bike or swim; equipping them with basic financial skills is important too.
Sometimes parents can find it overwhelming when it comes to teaching their kids good money management skills – especially if they’re not so great themselves. But we’re here to make your tax, accounting and financial lives easier, and this includes helping you, help your children.
So here are our five easy steps on how to teach your children good financial skills.
Begin Early
It’s never too early to start teaching your kids money awareness. Let them pay. Show them utility bills. Introduce the concept of saving money i.e. encourage them to turn off lights to save money, or not waste their food. Go through receipts with them. Explain why you need to go to work. Talk about bargains.
Start Saving
Help your child to become a saver by incentivising. Help them set little goals for their money. Encourage them to save for a particular toy. When they reach their goal, they’ll feel a real sense of achievement.
Talk About Money
Talk about money and keep things positive. Kids absorb your attitude to money and so best to leave the negative Nancy for after hours. Instead of saying ‘we can’t afford it, ‘ or that’s too expensive’, try saying ‘ we could save up for that’. Past generations kept children in the dark about money, it was a no go zone. Thankfully things have changed though and the more open you can be about money the better kids have a chance to get a handle on it.
Get An Account
Around the age of 12 to 13 is a really good time to set up a bank account. It’s a great responsibly they’ll feel proud to have.
Plan Ahead
Visiting a tax agent or financial planner with your teen is a great way to give your child insight into basic finance in the real world before they’re out there living it on their own.
To find out more about what you can and can’t claim this financial year give us a call, send us an email or book in for a visit. We specialise in servicing individuals and businesses in the South Eastern Suburbs including Pakenham, Lakeside, Berwick, Nar Nar Goon, Garfield, Tynong and Koo Wee Rup.