It is a great idea to start teaching your children good financial habits early. Starting young can provide your children with the necessary tools to approach finances responsibly. This could lead to less stress and overwhelm in the future and develop their potential to achieve their financial goals.
The following are a few ways to encourage positive saving and spending habits:
- Start an allowance system.
- Create a chore auction where each chore is worth a certain amount of money (or points), and they must bid on the ones they want. This will also help teach the value of work.
- Play ‘store’. Offer treats and rewards, such as candy, toys, extra time doing their favourite activity, or a reprieve from a selected chore.
- Practice paying bills together. Show them how to use cheques or online bill payments.
- Take them to the bank to help you make deposits and use the ATM.
- Help them set financial goals and create a budget to achieve them, fictional or realistic.
- Familiarize them with proper financial terms and use them regularly.
- Pose hypothetical financial situations and have your children solve them.
- Set-up jars, one for saving and one for spending, so they can see how much they are saving versus how much they are spending. (credit vs. debit)
Learn more about these tips to teach kids money from Stnce.ca: Teach Kids Money
*For an added bonus, teach them the value of giving. They are our future after all!
You can also set-up an RESP for your children to support their dreams in attaining post-secondary education while diminishing chances of debt upon graduation.
Simplified Financial is here to help. We want to prepare future generations for success in their finances. Give us a call!
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