Financial education is not just saving for a rainy day but learning to handle one’s finances wisely. Financial literacy must begin as soon as they start asking you to buy things here and there, so they know how to value and work hard for their money.
From piggy banks to passbooks and now to debit cards for kids, the ways of how to save money has progressed as the years have passed. Below are some financial education tips for kids (and parents) so they would be financially literate as early as now.
1. Start saving.
One of the most important lessons a parent can impart to his/her child is the art of saving. Piggy banks are the simplest but most effective way of introducing saving to your kids.
Ask them to keep those loose change instead of buying candies or toys and surprise them at how much they have saved up in just a couple of weeks.
2. Career Day.
Do you have those bring-your-kids-to-work days? Let them experience a day in your work and explain to them the meaning of a job or career. It would be a good idea to introduce to your kids where the money comes from and how one gets it. Discuss with them the idea of having careers when they grow older and become adults. But having a “career” can start soon for these youngsters. Hire them for odd jobs around the house and give them their “salary” for the day. That way they would understand that money comes from hard work and should be valued.
3. Budgeting is the key.
Give your child a little challenge. Give her $5 and bring her to the mall. Ask her to buy two things she likes, but the total should not exceed $5. Let her have fun choosing while you also enjoy and observe how and what she will end up buying. After this challenge, discuss with her that what she just did is called budgeting.
Luckily for this generation, there are what we call credit and debit cards for kids. These cards enable the kids to manage their money wisely and responsibly and at the same time having these cards are safer than carrying cash inside their pockets all the time.
Head on to your nearest bank, and they will surely be willing to teach you how to use credit and debit cards for kids. Start your child’s financial literacy, and you will not regret it.