5 Money Mistakes the Financially Literate Never Make by Lakeisha Rolle
Kids are not exempt from learning about handling money just because they do not have bills. Financial literacy is considered a basic life skill and we must be intentional with teaching our children about adopting healthy money management choices which leads to increased financial wellbeing.
Money Management for Kids
Save Consistently
When teaching your child about saving, create an avenue by which you can save with them as well. Incorporating saving as a family activity is a great way to provide that foundation, develop the habit and promote consistency. There are many creative ways to save money with children. Here’s how you can get started!
Use decorative jars, boxes, bottles or any container you can find to store money.
Encourage them to create a small savings goal to start and make sure they understand exactly what it is they are saving up for.
Sit with them and help them create a savings plan. Let them determine how often they will place money in their savings container and how much they will place there each time.
Spend Wisely
Teaching about the importance of spending wisely at an early age can be more beneficial than you think. It is important for children to understand the difference between their needs and their wants – that’s key! It is important for children to understand that everything is not a need and learn how to prioritize spending. When walking into a store, it is not enough to say “you can’t have that” – have the conversation about why certain items are not included on the list and how it will impact the amount of money you have to spend if you when you purchase something that is not in the budget. Use examples to help them understand that needs come first and wants have to wait a bit longer to purchase until there is extra money available.
Give Cheerfully
Teaching children about the importance of giving is important because it helps them to develop an appreciation for helping others. Encourage your child to give money to a charity or assist with raising funds for a specific purpose that aligns with their hobbies or area of interest. Help them to allocate a percentage or dollar amount for giving from their savings.
