Being a parent is wonderful, but it’s a lot of work. You’re constantly making decisions about how to raise your kids, which responsibilities and privileges are age appropriate, and how to teach them the life skills they’ll need to thrive as an adult. (No pressure, right?)
Talking to kids about money is important, and it can begin at a young age. Here are some tips to help you get started. And, if you’d like financial advice that supports your adult dreams and goals, please contact Interior Savings. We’d be happy to help!
Get them involved in everyday spending decisions
There are many small but meaningful ways to teach kids about the value of money and how to use it well. Consider having them select a breakfast cereal at the grocery store. You can ask them which options they like, and then which of those favourites offers the best value. A great way to do this with older kids is to teach them about the price per 100 grams vs the price of a box of cereal. (This information is typically displayed on shelves and can help consumers make better spending decisions.)
Other simple ways to ingrain a strong understanding of money include asking them to estimate how much the total grocery bill will be, asking them to price out the cost of a family activity or new clothes, or having them calculate the tip at a restaurant. You adapt these lessons at every age and stage — just keep at it, and they’ll keep learning.
Give them an allowance
When you give kids an allowance and let them choose how to spend or save it, it results in them making independent decisions about money. This can help teach them about the consequences of various financial decisions and impact the decision-making in the future. An allowance can be given with or without household chores attached — as a parent, the choice is yours.
You can also give kids an allowance with clear stipulations about how much is available for spending vs saving. Have your kids report back on how much they’ve saved, any financial goals they have and what they’ve spent money on. It can lead to some great family conversations!
Make a charitable donation as a family
If you’re able to make a charitable donation on a monthly basis or even once per year, get the kids involved. Have them look into organizations that matter to them and how the donation may be spent. Talk about how much you’re donating and how it fits into your household budget. This is a great opportunity to teach your kids about giving back while demonstrating financial responsibility. It’s a win for everyone!