As a parent, you may be wondering how you can set your children up for financial success? Here are some tips that will show you how to raise financially healthy kids.
Talk About Money
Let’s change the narrative around money. You can introduce the concept of money to your kids at an early age. As your children grow, continue to deepen the conversation and help them understand the concepts of money.
Our Kids Club is designed for children ages 12 and under, it helps teach children about money at an early age. At IAACU we realize that money management can be a challenging topic for adults and kids, which is why we designed the Kids Club to promote practical money saving skills and assists adults in promoting financial literacy and money management to youths. Learn more, or join today here: Kids Club.
If your unsure of where to start, you can also ask a trusted friend or family member to have these conversations with your kids. It’s also ok to let your kids know that you don’t have it all figured out. Explain the things you’ve done and what you would or wouldn’t do again and why. Sharing is how we learn!
Involve Your Kids in Major Purchases
Deciding where to go on vacation? Buying a new appliance? Include your kids in the process. They can help with the research. You can show them the factors that go into making the decision. You can help them compare the options before making the purchase. Even better, allow your kids to pay for the major purchase. Imagine how your children will feel knowing they did the research to make the best decision for the entire family.
Teach Your Children Math, and Money
Most people don’t learn about budgeting until it’s too late. Imagine what the future will look like for your children, if you teach them the value of savings today. Show them how compounding interest works. When you go to the store, could you give your kids a $10 bill and ask them to purchase part of the grocery list? When could you teach your children about credit. Could you educate them about how credit cards work before they go to college?
After children age out of our Kids Club program, IAACU offers a Dollars and Sense account that helps youths continue their financial literacy journey with parental guidance. Learn more here: Dollars and Sense.
Teach Your Children to Record their Spending & Saving
My mom used the envelope system. She taught me to write my spending on a receipt and then separate out my money, based on different expenses, into envelopes. My dad used a small notebook to record his spending and saving. To this day, my dad still carries that small notebook in his back pocket. He records his pay, spending, and net worth. He even tracks his gas mileage in that notebook. Watching my parents instilled this practice in me.
Remember the main reason for teaching our children about how to track their spending is to allow them to better understand where their money goes. More importantly, this allows our children to successfully handle their money and achieve their goals.
Don’t worry, teaching your kids about money doesn’t have to be a daunting task. If you’re like most people, the hardest thing to do is to start the conversation. We are here to help. Share these posts with them, discuss the articles on GreenPath’s site or simply reach out to us for ideas.
Free Financial Coaching
IAACU has partnered with GreenPath to offer our members free financial counseling and education to support people in paying off debt. Our professional, caring coaches will explain your options, including paying off your debt on your own or using a Debt Management Plan. They’ll support you to develop a personal action plan that works for you.