Managing your money: Raising money-smart kids

Managing your money: Raise money-smart kids by instilling financial nuggets of wisdom at an early age. Get tips on how you can do this here!

Saving money and controlling your expenses are difficult tasks -- much more when you are trying to impart the same lessons to your children.

So why not simplify the endeavour and learn together with your kids?

Here are some easy ways to learn about saving money while fostering a healthy attitude towards finances.

Organise your money at home

Loose coins should be kept orderly. Something as simple as organising the money in your wallet is a strong statement for the kids.

Money is not just a piece of paper or metal but it has value beyond its looks and therefore every cent must be spent and kept wisely.

Set goals with your kids

Saving is important - but saving without purpose is just a notch better than spending without thinking.

Talk with your kids about how you are planning to spend your savings. It could be for their tuition fees, their new dress, next summer's vacation, or whichever ways you prepare for the money you are keeping.

Then ask them how they look forward to using their own savings and what their time table is. If their plan is unrealistic, try to explain to them that their money will not be enough for their goal so they either set aside more from their allowance or they save for a longer period of time.

If ever you think that their target is unimportant, suggest to them other essential and interesting things on which they can spend their money. With regard to spending decisions, you still know better than them.

Help them track their savings

A list is important to keep track of how much money they already have and how far they are from achieving their goals. It will also help your kids learn about the importance of transparency and patience.

Remember that taking money from others is stealing other's time and energy

Money's true value is the time and effort you spent to earn it. Therefore, respecting the hard work of others can be shown by letting people decide on what to do with their savings.

It might be true that the money your children have come from you, but being able to save money is "Effort" with a capital "E".

Just ask those who've been working so hard for years but haven't been able to come up with a month's worth of emergency fund. By respecting your children's accomplishment to save, you're teaching them a lesson that they will carry as they grow older.

Reward achieved goals

Rewarding your child when a goal has been reached is a bonus in itself as the real award is the fact that your child, at such an early age, reached a financial goal.

The icing on the cake? When asked what they plan on doing with their savings, if your child answers that they plan on continue saving or dabbling into investments, then you can go ahead and give yourself a pat on the back.

Not only has your child become a step wiser with their finances, but you've done your job in making them money-smart.

Get started now!!

The secret with these steps is doing them together. You will need each other's support to achieve your goals and learning.

Of course, you are the one on the driver's seat here. But always remember that by showing respect for your children's decisions regarding their own money, you are training yourself in self-control in handling your family's finances.

Written by

Rogie Ylagan

Managing your moneyRaising money-smart kids