We spend so much effort making sure that our children have the best lives that we can afford. We are diligent in making sure that they grow up better than we did, and that they have the things that we didn’t.
We carpool them to sports practices, encourage them in music lessons, and make sure that their grades are top notch.
But what about finances? In the area of money, we must put forth a special effort to be sure that the next generation is better than the last.
You’ll be glad to hear that this is not a hard task to do. There are lessons about money in just about everything we do. Let’s teach our children lessons that will last a lifetime and practices that will give them a competitive edge in life.
Here are 23 Simple And Easy Ways To Raise Financially Literate Kids:
- Give your child three piggy banks and label them Spending, Saving, and Sharing
- Give your child an allowance. An allowance gives your child an opportunity to manage
- Have your child keep track of everything they have spent from their Spending piggy bank. Have them write down the amount of money they’ve spent and what they’ve purchased.
- Instead of giving only toys on birthdays and Christmas, consider giving your child money.
- Take your child to the bank to open an account.
- For monetary gifts over 5 dollars, give your child a check and take them to the bank to deposit it.
- Be cautious of raising your kids with memories of unplanned shopping trips. Instead plan and prepare a list with your child and stick to it when you get to the store.
- Teach delayed gratification by not letting your child spend all of their spending money on one thing. Instead, have them accumulate even more money than the item cost so that they won’t go “broke” after buying a game or toy.
- Occasionally give your child the option to “bank” their lunch money for the day by packing a lunch from home instead.
- Watch your child’s favorite tv show together and discuss commercials and the constant pressure to buy things that we may not need.
- Encourage entrepreneurship and business enterprise. Your child can have a bake sale, set up a lemonade stand, or have a yard sale to sell old toys. If your child has a business idea, don’t discourage them by saying that something is impossible or it won’t work, rather help them refine the idea. Help them to go for it!
- Take your child on a field trip to the US Dept. of Treasury.
- Make homemade bread or rolls and as dough rises explain compounding interest. Show them that, just like interest, they may not notice the dough rising at first, but with time you will notice a significant increase.
- Teach your child about interest by setting an interest rate for your child’s savings piggy bank. Add the amount of money in interest so that they can see how money can grow.
- Take your child to visit your closest Stock Market.
- As a gift, give stock from a company that your child is interested in.
- When your child reaches a certain age, help them to prepare and send announcements to family and friends that they are now old enough to be “hired” for chores, babysitting, or lawn care.
- Subscribe to magazines such as Black Enterprise, and acquire reading materials from financially savvy African Americans such as Les Brown.
- Pay your kids to learn about money. Encourage financial literacy by offering a sum of money for reading finance materials and writing a report explaining what they have learned.
- When your child is of age, allow them to pick a company to invest in.
- When it’s time, let your child participate in the family finances by allowing them write out the checks to pay creditors.
- Surprise your child with saying that you will spend some of the money you saved by doing something special. Take photos to hold on to the memories. Explain that the trip wouldn’t have been possible without saving the money.
- Teach your child that some of the most important things in life can’t be bought, and spend the day doing something that money can not buy. Be sure to capture the memories on camera.
Your son may or may not stick with his sport, and your daughter may decide that she doesn’t want to play the piano after all, but teaching your kids about money is a skill that will stay with them for life.
Its benefits are greater than you can imagine. Knowing how money works is one of the BEST unfair advantages that you can give your children…And no one minds a good head start.
So let’s do what we can to put our kids in position to be ahead of the game!
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