We were listening to the news on the radio whilst in the car at the weekend, when Mini asked “what is a recession?”
This got me thinking that money really has a terminology and language of all it own and it is my responsibility as a parent to teach this to the boys and to make sure that they are money smart, but how do you do that?
Start talking to your kids about money at an early age
Explain to your Kids why you work, so that you can make money for the family. Explain that the items they use each day all cost money and you must work to make and save enough to make sure all things are paid for. From an early age if you asked the boys why their Daddy went out to work their response would be “to get pennies” . We also explained that a bank is a place that keeps money safe.
Give them practical money lessons
The best way to teach kids to start managing money is to give them some. If they blow their pocket money on the ice cream van and don’t have enough left for later in the week, that’s actually a good thing: They learn firsthand the consequence of overspending.
Another way to do this with older children is to get them involved with the family shopping budget. Get them to make the list and give them a budget to spend to get the shopping.
Model good habits
Make sure you set a good example for your kids. Let them see you making smart decisions about money. Be a role model,Let them see you have a savings account and how you shop wisely. Show how you set up a budget and stick to it.
In addition to disciplining yourself to use smart money habits, make sure you point out to your kids how those habits work in your day-to-day life. You have a budget and spending priorities. So should your child.
Talk about money
Money should not be spoken to in hushed tones or b e a dirty word. Make sure you talk to your kids about money and finance. Talk about your work and how your salary is based on the work you do. Show how your earnings reflect the health of your business and the economy. If your family is enduring a difficult time, find a way to talk about it an age-appropriate manner.
Good Things Come to Those Who Wait
Delayed gratification is one of the hardest money lessons I think. I want to avoid that “buy now, pay later” mentality that could mire the boys in credit card debt later on. So, as much as I can, I reinforce the idea that waiting pays off. But remember that postponement of pleasure is a grown-up characteristic, learned from grown-ups.