Tips for Teaching Kids About Money

1. Tips for Teaching Kids About Money Teaching kids about money and finances can be a daunting task, but it’s a crucial parenting step to set them up for long term financial success. Learning good money habits early on can teach kids to make good choices like building credit early and avoiding unnecessary debt. Teaching kids financial literacy as early as possible is key. As soon as they can learn to count, they can understand the concept of money—and this is when it’s important to build good habits. Start by establishing a basic understanding of the concept of money. When your child achieves their goal, they will begin to feel more confident about money management. Just make sure the goals are achievable within a couple weeks to a month. Although talking to young children about the concept of credit, debt, and interest can seem intimidating, it’s essential to help them create strong financial habits throughout their life. Starting the conversation early will help them make better money decisions, build a good credit score, and avoid debt. Tips for Teaching Kids About Money: 1. Start early 2. Teach the basics first 3. Practice with Monopoly money 4. Write out goals 5. Help them create a budget—and stick to it 6. Compensate them fairly for chores 7. Steer clear of impulse purchases 8. Include them in some financial decisions 9. Don’t shy away from tough concepts 10. Teach them to give 11. Make saving fun 12. Lead by example Source: self.inc