Parents work hard to provide for their children’s basic needs, such as food, clothes, and a good education, among a few. But children will grow up eventually, hoping that they bring with them good values and learnings into adulthood. As parents, their children turning out to be responsible adults is already a significant accomplishment.
Children learn a lot through their environment. But their biggest influences usually come from home and school. Aside from giving importance to their studies, children should learn how to handle money while they are still young. Some merchant services in Utah provide finance-related products that can be useful to parents and their families.
Teaching your kids how to save
Saving money might not be as easy as it seems; even adults do have challenges in handling their money. A report by the National Foundation for Credit Counseling of 2019 reveals that only around 55 percent of adults are somehow confident with their financial knowledge. Meanwhile, a separate report from Bankrate states that less than 30 percent of Americans have no emergency savings.
Such reports can be quite alarming. However, there is still hope for the younger generation, especially for your children. There is no right age when it comes to teaching them the right set of values that they can bring along into adulthood. After all, all parents only want their kids to grow up into responsible adults and not be a burden to them and society.
A parent’s simple guide to teaching financial education for kids
Here are some things that parents should remember when teaching their kids the importance of saving:
1. Be open about your finances.
Kids should be aware of your household expenses: monthly rent, groceries, tuition fees, energy bills, and even your family car. You can explain to them why we pay for them and how we get the money to pay for these. They should understand that money does not fall on trees and that we have to work hard for it.
2. Practice what you preach.
You should set a good example for your children in terms of handling your budget and expenses well. Education starts at home, and we as parents are their first teachers. It is better to let them understand the value of saving while they are still young.
3. Teach them to save.
Some parents give their children a weekly allowance. This should enable children to be responsible with their money. Meanwhile, some parents do not easily give an allowance but rather let their children work hard for it. One way is by giving their children respective chores to “earn” for their money. At the same time, kids can learn to be responsible at home.
4. Set them up something where they can save.
For young kids, you can gift them a cute piggy bank. When they turn into adolescents, you might want to set them up a bank account where they can stash in their savings. They will surely love that feeling seeing their money add up as time goes on.
Sometimes, some things can’t be learned at school, including the value of saving money. As adults, it is their responsibility to teach children the importance of saving money and how they can bring that positive trait into their adult years.