How Parents Can Help Kids Develop a Healthy Relationship with Money

The subject of holistic approach to money should be introduced to children at a very tender age. 

As parents, we are responsible for teaching our children various skills and disciplines they will find helpful when they grow up. Some of the things that we should touch on when raising our kids are delicate, but we should teach them. Money is one of these critical topics.

To some parents, the money topic is too delicate, to the point it is taboo to talk about it. The problem is that if we ignore this subject, it can present perilous outcomes in the future. 

This article looks at how we as parents can help our young ones to develop a healthy relationship with money. Read on to know how to go about this sensitive topic.

Introducing Age-Appropriate Lessons

You should introduce the money topic to your kids as early as possible, as it will be easy for them to understand the concept and apply it appropriately in the future. Introduce the topic in the smoothest way possible to prevent them from getting confused.

If you have preschoolers, the most appropriate money lesson is what it is and what it can do. Take them shopping once in a while for them to understand that you can get various materials after paying. 

You can also introduce them to various payment methods, such as solid cash, card, and online payments. As they get older, you can teach them about wants and needs and how to differentiate between the two.

For elementary school-going kids, you can offer an allowance and impart lessons on savings and budgeting. Give them a piggy bank or a savings jar, where they can watch their savings grow and know how to use their saved funds for what they need or want.

Introduce investments, banking, and working for preteens and teens. Also, be a mentor or look for one to help them start businesses.

Lead by Example

A crucial part of teaching your young ones about anything, including money, is leading by example. They follow what we do subconsciously, as they look up to us, which means they may also pick up our bad money habits.

When forging a healthy relationship between your kids and money, you should set a good example and do most of what you teach. For instance, if you introduce them to saving, you also get a saving jar to give them the morale.

Help Them Understand that Money Comes and Money Goes

Disappointments are part of the money-making process, and your kids should understand this earlier. Money is fluid; one time you have it, next time you don’t have it. Once your kids grasp this, they will be stronger to disappointments in the future when their accounts run dry. It also makes them open to risks, which is essential for investments.

Openly Discuss Money Mistakes

We all have stories to share about our past financial mistakes. We should not be ashamed of such failures, as they are learning points. Talk about the times you went wrong with your finances, how you recovered, and lessons learned from the ordeal.

Your young ones can pick several things from your stories, which will help them understand plenty about finances.

Encourage Giving

Most money lessons focus on making it, conserving it, and growing it. You can slip in the tiny but essential part about giving, and teach them about the ‘Save, Spend and Give’ mantra. 

Giving to charities and other similar projects will help build their character, and help them know that the world revolves around many other values besides money.

Introduce Them to Credit and Debt

You need to dedicate several lessons to tackle the subject of credit and debt. Many parents will go the route of discouraging credit, which is understandable, seeing the several downsides associated with bad debt.

Talk to your young ones about debts and loans, and how they can maximize on them. Discipline is important when dealing with debt, a virtue that you should instill in them when introducing them to money.

Moreover, touch on credit scores, their impact, and how to maintain a good standing.

Teach Budgeting Skills

Budgeting is a core teaching in financial literacy and should be one of the first things you teach your children once they grasp the concept of money. Budgeting looks at how to plan for spending and helps track the expenditure.

Budgeting requires discipline, to prevent impulse purchases, which always mess up finances. When teaching about budgeting, you can use a hands-on approach for the best outcome. Guide your kids on creating a budget and how to stick to it. You may give extra money to build their discipline, where they don’t go past the indicated expenditure.

Closing Remarks

Raising your kid requires you to go all-in for them to grow into responsible adults. Money is one of the areas to lead your children through, and the earlier you start, the better the chances of desirable results. 

This piece looks at ways we can help our kids develop a healthy relationship with money. Follow the highlighted points for an easy time developing your kids’ relationship and understanding of money.