Every parent wants the best for their children. The best in terms of clothes, gadgets, and everything. In short, they want them to be secure. For that, it is necessary to lay a strong foundation so that they can do well in life.
The most important question is whether you are teaching the key lesson about money to your children that will impact every aspect of their life?
Believe it or not, the kids will find it difficult to go further in life without the working knowledge of money. Money is the central point for everything – clothes, cars, education and what not! Therefore, inculcating smart money habits in children is supremely important. If you want your children to grow leaps and bounds, it is high time to impart financial literacy.
Are you ready to know what steps you can take? If yes, keep reading ahead to know all the answers.
Play money games – As soon as your kids become old enough to count correctly, start playing the money games with them. You can use jars or play games that help children to count money and identify coins.
Whenever you go shopping, surprise them sometimes by giving them a few amounts of change to spend according to their wish. Do not forget to tell them that it is okay if they wish to save that money instead of spending it.
Encourage saving habits – Let us tell you an interesting technique here. Take three piggy banks and label them as “sharing,” “spending,” and “saving.” Let them put their money portion into each jar. Whenever the jar of savings gets full, deposit the money into the savings account of the child. The spending jar is meant for short-term purchases. “Sharing” portion is like a charitable bucket for your kid. If he wants to support others with a few bucks, he can.
Make them learn to use ATM and debit cards – When your child grows a little and sets his foot into the teenage, it is time to get a debit card for them. Maybe they are doing a part-time job. So, it perfectly makes sense to help them build good financial habits.
There are various applications through which your kids can set saving goals and invest their money wisely. Likewise, you can get a debit card for teens from Greenlightcard.com and get real-time notifications any time the card is used. These are the money management tools with which your kid will learn how to save/spend money intelligently.
Borrow wisely – Once your teen has entered college, make them know the importance of building a strong credit history. Strong credit history is more than just using a credit card to purchase things. It will be the thing that his potential employers will look into when he goes for his first job. If he is planning to buy an apartment in a few years, then it would also help with the mortgage application.
So, if your child is handling the credit card, encourage them to pay off the monthly installments on time for a strong credit history. In some cases, you can also be the account co-signer of your child.
Inculcating the habits as mentioned above in the children will build a solid financial foundation for them once they start their lives as young adults. So, be their light and teach them every best lesson that you can.