It's never too early to teach your kids how to spend their money wisely, that way, they won't have a hard time with money once they grow up!
Have you ever stopped and thought if your kids know how to spend their money wisely, or manage their finances once they grow up? Well, it isn’t enough to just tell them that they have to save money, you have to teach them very important financial lessons so that while they’re still young, they would understand the value of money.
1. Teach them about how people make money
When kids ask parents about where money comes from, some of them say that they get it from the bank, or from ‘rich people’. This is actually a pretty bad idea, since you want to teach your kids some real-life lessons when it comes to talking about money.
That’s why it’s very important that you let them understand how people make money, and you can do this by talking to them about jobs and that people get paid to do certain things that they’re good at which helps them earn money. You should also explain to them how selling things work.
You can take this to another level by ‘hiring’ them to do their chores, or you can ask them to gather up their old clothes or toys, and start a garage sale in your neighborhood. It’s a good way to get them star
2. Teach them how to shop wisely and budget
You can start teaching them on how to budget by playing pretend games with fake money. You can give them a budget and a list of things that they want to buy and you can help them work out how to best spend their ‘money’ wisely.
Another way would be to teach your child to be a cashier, so that they can practice their math skills in a fun way. Eventually, you can let them help you out with shopping and budgeting money to make the most of it.
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