It’s no secret that parents and guardians carry a huge weight when it comes to taking care of children. Providing for them, raising them, feeding them, educating them — it’s no easy feat. This especially rings true when it’s time to talk about a subject that impacts everyone daily: money.
So, when it comes to the question about when you should introduce the topic of money to your children, the short answer? It’s never too early. Providing transparency, demonstrating good habits, and making them comfortable around the topic can help your kids develop a strong and healthy relationship with money and set them up for a successful future.
That’s why LendNation is providing these helpful tips about teaching your children valuable lessons about money.
Adopt Money-Positive Language
Instead of saying things like, “We can’t afford that right now,” or “We’re too broke to buy a new car,” try adopting language that more clearly defines your financial goals and/or reasonings for or against making purchases. For example, you could say, “That’s not on our list of priorities right now,” or “I can’t purchase that because I’m working to save money for a new car.” These simple changes can show that you’re being strategic about how, where, and why you spend your money.
Show Them Costs and Rewards
Another way to set a healthy example for your children is to physically show them what it costs to purchase things and the potential rewards they can reap from saving. For instance, if they want a small treat or a toy from the store, have them pay for it from their own jar of money or savings. The physical act of spending money — and even seeing it go away — will help them better understand what it actually costs to buy things and whether it’s worth it.
This also provides a great opportunity to show them the benefits of saving. Explaining that if they buy a candy bar today, they won’t have as much money to buy the toy they’ve been wanting can be a great lesson in patience and priorities. If they want to purchase the candy bar instead, that’s still a reward they’ve earned! But it’s important to help them understand not just the physical cost of the candy bar, but the cost of not being able to purchase something else.
Dollars Given vs. Dollars Earned
When it comes to giving your kids an allowance, financial experts recommend you simply don’t. That’s because you want to set an early example that reflects the real world: You have to work to earn money. Teach your children the value of hard work by encouraging them to earn money in their own ways.
When they’re younger, you can help them sell items they’ve outgrown or items they make — like lemonade or baked goods. As they get older, you can teach them about taking advantage of things they already do or skills they have — like cleaning, yard work, or babysitting — and offering their services to others. And, when they’re finally of-age to have a job, reaffirm the importance of saving and careful spending.
Be Transparent and Inclusive
Being transparent about your finances and including your kids in day-to-day decisions can also be an effective way for them to build a healthy relationship with money. From small things like buying off-brand vs. name brand products to larger decisions like taking out a loan, take the time to explain and help them understand. This reinforces all the great lessons outlined above while helping build their comfort level around a topic that will impact them every single day.
And while you work to help your child’s financial future, know that LendNation is here to help you. With multiple locations spanning the country, we’re here to provide financial support with helpful title loans, installment loans, and payday loans, and dependability with expertise and guidance you can count on. Stop by one of our stores today so we can help you secure a strong and healthy financial future.