Are your kids asking you questions about money and spending? We'll show you why it's never too early to educate your kids about finances.
If your kids are asking about the source of money or nagging you to buy items every time you walk into a store, then it may be time for you to teach them about the true value of money. The attitude that children have towards money could affect their spending behaviour as they grow so its important that kids understand the way the financial world works.
Follow these simple tips and tricks for teaching your kids about money:
Piggy Banks: Give your child a piggy bank and encourage them to save any money they receive. If they deposit their loose change into their piggy bank frequently, then they will be able to see their money grow as they continue to put change into the piggy bank.
Pocket Money: Giving your kids a bit of spare cash for chores around the house may be a good way to teach them about earning. If they learn that money has to be earned, then they may also develop a value for money and feel a desire to save it.
Open a Kid's Bank Account: If your kids are older, it might be a good idea to open a bank account. Several banks in Australia offer accounts tailored especially for children and can even make banking fun. For example, Any child under the age of 12 who opens a Youthsaver savings account with Commonwealth Bank automatically becomes a member of the Dollarmites Club which offers activities, games and tips about money for kids. Making your child familiar with the bank at an early age will help them to become comfortable about trusting their money to banks.
Go Shopping: Take your kids grocery shopping next time you go out. Explain to them the differences in the price of things and compare prices from other stores. This may help them to grasp the idea that items are priced differently and to distinguish between things that they want and things that they need.