It is important to teach your child the value of money from a young age. Money plays an important role in our society and it is crucial that your child understands how to use it correctly.
Did you know that children as young as three can start to understand basic money concepts? By teaching your child about money, you are setting them up for success in the future.
Some parents may feel like they do not know enough about money themselves to teach their child. However, there are many resources available that can help you. You can start by teaching your child the difference between wants and needs. Needs are things like food and shelter, while wants are things like toys and sweets. It is important for children to understand that they cannot always have what they want and that they need to be smart with their money.
10 Things you should know about money before teaching your child:
- Money doesn’t grow on trees – This is a common saying but it is so important for children to understand that money doesn’t come for free. It is earned through hard work.
- Money doesn’t buy happiness – This is an important lesson for children to learn. Just because someone has a lot of money, doesn’t mean they are automatically happy.
- Money can be used to help others – It is important for children to understand that money isn’t just for buying things for themselves. It can be used to help others in need.
- There is such thing as good debt and bad debt – Children need to understand that not all debt is bad. Good debt is used to buy things that will appreciate in value, such as a home or an education. Bad debt is used to buy things that will depreciate in value, such as a new car.
- Saving is important – Children need to learn the importance of saving money. They should understand that they can’t always spend everything they have and that it is important to put some away for a rainy day.
- Investing is important – Just like saving, investing is also important. Children should understand that investing money can help them make more money in the future.
- There are different types of investments – There are many different types of investments, such as stocks, bonds, and mutual funds. Children should understand that there are different risks associated with each type of investment.
- Money should be used wisely – This is an important lesson for all children to learn. They need to understand that money should be used wisely and not just wasted on unnecessary things.
- Money can be lost as well as gained – Children need to understand that money can be lost as well as gained. They should be careful with their money and not take unnecessary risks.
- There are different ways to make money – Children should understand that there are many different ways to make money. They can earn money through a job, investing, or even winning the lottery. Also, children should understand that there are different ways to save money, such as in a bank account or in a piggy bank.
5 Things you should never do with money:
- Don’t gamble – Gambling is a risky activity and children should avoid it. They could end up losing all of their money if they’re not careful.
- Don’t give or loan money to friends – It is important for children to understand that giving or loaning money to friends can often lead to problems.
- Don’t spend all of your money – Children should understand that they need to save some of their money. They can’t always spend everything they have and they need to be prepared for unexpected expenses.
- Don’t buy things on credit – Children should avoid buying things on credit. They could end up owing a lot of money if they’re not careful.
- Don’t be afraid to ask for help – If children are having trouble understanding something about money, they should not be afraid to ask for help from an adult.
Teaching your child about money is one of the most important things you can do for them. By doing so, you are setting them up for success in the future. There are many resources available to help you, so don’t hesitate to get started today. We hope this article was helpful and that you’ve learned something new. Stay safe and have a good one!