How do I teach my kids about money and financial responsibility in a way they’ll understand?
Teaching financial literacy is crucial, and it’s something we work on constantly with my boys.
Our Journey with Money
- Pocket Money with Purpose: We use a “Spend, Save, Give” jar system for my youngest’s allowance. For my oldest, it’s tied to extra chores.
- Needs vs. Wants: We always ask, “Is that a need or a want?” and guide them to check their “Spend” jar for wants.
- Delayed Gratification: This is hard for my youngest, but we chart how many weeks it takes to save for a desired toy. My oldest saves for bigger goals, appreciating them more.
- Involve Them in Family Finances: We share age-appropriate insights, like explaining we’re saving for a family holiday, or having my oldest see bills paid.
- Learning from Mistakes: If my youngest spends all his money on sweets, he learns the natural consequence of waiting for the next allowance.
It takes patience and repetition, but seeing them make thoughtful choices and understand money’s value is truly rewarding.
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