Have you ever said to your teen money doesn’t grow on trees you know? I have. After reading a recent Post article on kids and money I am realizing how early we need to be teaching our kids some money skills. So what do kids need to know? For my teen age daughter I have been giving her an allowance for years now and there are certain expectations that go with it, as well we have had regular money conversations in our house. So what is it important for our kids to know? What do you want your child to know and how are you teaching them?
Kids will model our behaviors whether we like it or not, really it is a monkey see monkey do world. So if you do not have good money habits, it is likely your kids won’t have a clue either. So if you don’t have the skills learn them, and let your kids see you learning. Rachel regularly sees me devouring money materials. She has seen me learn to budget, calculate costs, smart shop and more. We want to model skills that will help our children in the long run.
So what do kids need to know.
1. They need to know money comes from earning it. Has your child had their first paid gig yet? Rachel’s first money earning gig was shovelling a neighbours walk. She earned $5. She thought that was a lot. She was 9.
2. They need to know how to save. Do they want something? Get an allowance? Let them save to get it, they will appreciate it so much more and they learn a great skill at the same time.Show them how to bank.
3. Thy need to know how to budget. I share my budget with my daughter and she helps me even with the shopping, she is learning what things cost and won’t have sticker shock when it comes time to move out.
4. They need to know the dangers of borrowing. Interest is a pain and has a high cost. I am trying to teach Rachel to live as debt free as possible. Carrying debt is a burden I don’t want her to know. I shared with her my bankruptcy and my mistakes so hopefully she can learn from that as well.
What do you think it is important for your kids to know when it comes to money and how are you teaching them?