Now is a great time to start teaching your kids or younger siblings about how to be responsible with their finances. It might sound a bit serious to talk about money management with young people, but the sooner you introduce the ideas of saving and being responsible, the sooner they’ll take hold. And these habits will have lifelong value in ensuring that they grow up being smart with money.
It’s one thing to dole out some tips and advice to a young person, but they’re more likely to learn by actually participating. Learning by doing is one of the absolute best ways to learn. Here’s some tips on finding those teachable moments in your child’s life.
1. Pocket Money
The most obvious way to help kids learn is to give them some money of their own. Only a little over half of 15-17 year olds who receive money on an ad-hoc basis bother to look after their spending habits. In contrast, almost two-thirds of those who receive a regular allowance are much more aware of their spending and saving.
You can increase their responsibility by giving them a monthly budget, and asking them to plan in advance for their school lunches. If they end up spending it all at once on something else, it’ll be a valuable lesson when they have to bring their own sandwiches!
2. Go Shopping
Going grocery shopping can be a chore for young people, but if you show them how to shop smartly they can get involved with the process. It’s even easier to do this with online shopping. Sit them down at the computer and take them through the process.
There’s a lot to learn about being responsible with online shopping too. You can help them to understand what makes a shopping site secure and trustworthy, and about why returns policies are so important to read before you make a purchase you might need to send back, such as clothing/
3. Get School Involved
Holding a market or starting a small business at school is a great way to teach kids a higher level of fiscal responsibility. Since both of these activities require a great deal of forethought, there’s a lot more to learn.
Your child’s teacher might already have a plan in place for this, so check in and find out. If they don’t have something in the curriculum already, it’s a great opportunity to put together something interesting that will help kids learn all about how money works when you’re in business.
4. There’s an App for That
There are a few debit cards out there designed specifically for young people, such as Osper and GoHenry. These have apps that allow parents and guardians to manage their kids’ spending. This makes it even easier to allow young people to have more adult responsibilities without the worry of overdrafts and spending beyond their means.
These are just some of the ways you can start teaching your kids to be smart with money. If you’re looking to take your own understanding of money to a new level, an accountancy course is a fantastic way to learn. Contact us now to speak to a course advisor and find out more.