- Personal Finance»
- Understanding Finance
Financiation: Financial Education for Kids Gives an Early Start to Children's Savings
Financial Education for Kids
Teaching kids about personal finance and the value of money is a parent’s responsibility.
Financial education is important for kids to learn fiscal responsibility . From kids savings accounts to teaching your children about spending wisely, it is important to teach your children what you know. The time you spend teaching your children is the best investment you can make in them. This opens up avenues of communication that will create good financial habits for a lifetime. Communicating with your kids create bonds (not the treasury kind, the loving kind) that will help them turn to you for reasons far more important than money in their future.
There are many ways children can learn good savings lessons. Here are a few ideas about financial education for kids:
- Talk to your child on their level. It is very important to handle their concerns on a age appropriate level
- You and your spouse need to be a team. It is important to be able to answer your child’s questions the same way if each of you are asked. It is also important that you both agree on the same way to handle teaching your children.
- Ask your child what they think, what is on their mind, and how you can help them, so you don’t over explain or overwhelm them.
- Start today teaching your kids about the value of money.
- Talk about how to save, how to look for purchases, what interest and investments mean
- Financial education for kids involves teaching your kids about making choices about “things” they want., and whether the purchase is worthwhile.
- Teach them to divide their allowance into 3’s. One part saving, one part spending, and one part charity. Help them set up a kids savings account.
- Talk to them about how you earn money, and how they can earn money.
- Financial education for kids can be fun. Make learning about money enjoyable.
- Encourage your kids to save for something special that they really want
- Talk about the vocabulary involved with money
- Teach them the mathematics of money. How many quarters there are in a dollar, how to tip, how to make change, and how to figure sales discounts.
- For older kids teach them about interset and how it compounds so they can see that money makes money
- For older kids, you may want to help them choose to buy stocks in a company like Disney or Nike.
- Teach your kids how to balance a checkbook
- Depending on how much money is involved, mutual funds may be a good choice as a vehicle to help kids make investment choices. Investments vs kids savings accounts
- For younger kids, use a piggy bank so they can see their money accumulate.
- Financial education for kids also involves teaching about spending -Take your kids shopping and teach them how to look for bargains and sales
- Teach them about using coupons and how to stretch their dollars
- Teach them to wait until they can afford to buy what they want. You want them to always remember to remain debt free
- Teach them about kindness, compassion, and intrinsic values
- Teach them not to be materialistic, that money is merely a means to pay for things
- Teach them the values of who they are, and to not identify themselves by the brands they own, or the things they have.
- Balance the financial education for kids you give, with moral and intrinsic values, more than monetary values.
- Anytime is a good time to start a kids savings account.
Financial Education for Kids means Important Lesson
Teach kids to Save Money
It is important that you empower your children. Give them a sense of self confidence, competency, and capability. Through your encouragement let them feel like they can deal with the challenges that they will face. Help your children feel excited about what they can do for themselves as they go forward. Teaching your children about money is much more than lessons about money. When they make regular deposits into a kids savings account, they can feel good about seeing their savings increase. The time you spend with your children can teach them many more life lessons. You will benefit from these conversations also. It feels good to teach our children. Spending time with your children is a valuable gift that they will always hold onto. It is a good and positive thing to teach your children about your values and your morals. There are many benefits and rewards to teaching our children the lessons of life. Financial Education for kids can be a fun experience even online. Play games about money with your kids through the united states mint website. www.usmint.gov/kids/games
Go to this website to play an interactive money gamevideo with your kids. www.newmoney.gov/education/default.htm
A Financial Education for Kids Can Be Fun
How to Teach Children About Money
Overall, you want your children to gain an understanding about finances that will help them function well in society. Ideally, you want to give them the knowledge, confidence and skills, that will help them make smart fiscal decisions. The financial education for kids you design can teach your kids lessons for a lifetime.
By the time they are teeenagers, it is probably a good idea to have them to understand and simplify financial concepts about money such as:
- an overview about what money is
- how our government prints money, and what supply and demand mean
- how money pays for our expenses
- how money grows
- teach kids about debit cards and credit cards
- teach kids to stay out of debt
- keep the right perspective on money
- risk and return on investments
- monetary liability and responsiblity
- choices they can make
- why it is important to give to charity
- the big picture of finances
- how a business makes a profit
Remember, finances can be a very complicated subject. You want to keep it simple, and interesting for your children so that they look forward to learning more. There are many benefits to giving a financial education for kids to help them understand personal finance starting at a young age. There are many benefits for children to learn about the value of money. These are lessons that will benefit them in the near and long term future. Through your wisdom and encouragement your child will grow up with a responsible and healthy attitude about the facts of money.