5 Tips for Raising a Financially Savvy Family
There are hundreds of questions that pop up on a parent’s or soon-to-be parent’s mind. How should we raise our children? What lessons should we instill in our children’s minds at an early age? Financial literacy — like any other fundamental life lesson — must begin at home.
The concept of money to children can be difficult to understand, but with the right strategies it is possible. Because most schools lack a curriculum that teaches daily life lessons and financial strategy, it is crucial to approach this topic as a family.
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Here are the top tips for raising a financially savvy family:
1. Follow the Leader
First, and foremost, the best way to teach anything is by example. This transcends to money lessons as well. Parents should lead by example by controlling your own personal expenses and budget — and in turn you will teach your child how to properly handle money. Educate yourself on the basic principles of personal finance and implement those lessons in your household. This will not only improve your own situation will also set a foundation for how your family unit views money.
2. Game On
What better way to teach fiscal responsibility than to simulate it through video games. Though many interactive games are mind numbing, there are virtual games available to aid in teaching money matters. Developed for middle school and high school students by the National Council on Economic Education, Gen Revolution teaches children important personal finance skills as they play and compete against each other.
Other great virtual games can be found on the National Council on Economic Education’s Financial Fitness for Life, a new multi-faceted, comprehensive economic and financial literacy program for grades K-12.
3. Allow Allowances
It is important for children to see and understand the difference between “getting” things and “paying” for things. Through age-appropriate discussions, financial experts suggest not shying away from explaining the relationship between working and earning money.
By giving children a weekly allowance, parents can eliminate the chance of your children nagging about wanting money for clothes or entertainment. When children earn their own money by doing simple household chores, they will learn the value of hard work and understand the concept of earning as opposed to getting money out of nowhere. All in all, getting an allowance
An allowance will give children the chance to figure out how to budget their money — even if it is on a small scale.
Another positive aspect of allowances is that they are a starting point for developing money-management skills because ...
