You already know how important it is to develop a sense of how the world works from an early age to be successful. Yet there is a lot of parents who just don’t feel comfortable talking about money to their kids. They see it as a thing of taboo. Of course, it’s true that middle schools now days have classes about financial education for your 11-years-old kid, he needs to get aware of the financial world much earlier than this.
But it’s still an intimidating task for most of the parents to talk about money to their kids of 7 years old. But we’ll help you with it.
In this article, we’re going to show you five steps to give your kid proper financial education.
So, let’s begin with the very first point.
Hand Over A Piggy Bank To Give Them Financial Education
Want to make your young kids financially literate? Then there is no better way to start their financial education than giving them a piggy bank.
At first, they will start saving a small amount of money just for fun. But as time passes, you can make them pile up money for more meaningful goals. For example, you can make them save a portion of their pocket money for weeks so they can buy their favorite toy with their own money.
This will definitely make them more financially aware.
Make Them Familiar With Math As Early As Possible
Your kids can’t take care of their own finances if they don’t know math. To delve into the world of finance, your kids have to be able to add, subtract, multiply, and divide independent numbers.
However, with the help of the preschools and your careful parenting, they’ll quickly understand the basic concepts of math. In fact, there are several tools and software available in the market to teach kids math. Use every resource available to you and teach your kids math.
Open A Bank Account To Start Their Practical Financial Education
What is a more effective way to financially educate your kids than opening a bank account for them?
Well, wait. Actually, there is no other better way. So, you need to give your kids practical experience of how banking and financial system works. You can open a bank account for your kids as soon as when they seven-years-old.
If that’s not possible, you can create a junior ISA account so you and your kids can operate the account together. They can fully take over that account once they reach the 16-year-old mark.
Either way, your kid will have a great experience in finance first hand.
Try To Hook Them Up With Right Financial Goals
Your young baby is probably more obsessed with buying his favorite comic or robo-toy right now, but as the time moves forward, you have to make him prioritize other meaningful financial goals.
It can be making a financial plan of buying his own car, insurance, or even a new computer. This way, you can effectively give them financial education.
Help Them Become Free
As your child grows up and becomes mature, you need to make him do his own things to help them become independent. If your kid is just starting out his college, it’s a great time to do it. Tell him to start taking care of his own finances.
You can ask him to take up a part-time job so he can become independent. Ask him to take care of his own stuff such as Rent, utility bills, insurance, car loan, etc. It’s even better if you ask your teenager to try to help with your monthly costs.
This kind of approach is the key to making your kid financially aware.