It’s never too early to learn about money! When I was young, my parents set out little jars and taught me that a portion of my $5 allowance different purpose: $2 to savings, $1 for charity, and $2 for me to spend.
My goals and financial literacy may have changed since I was 8 and saving for a bike, but the foundational principles my parents taught me about money remain the same.
So, what are you teaching your kids about money? Beyond modeling healthy financial behaviour, you can teach and encourage your child to have a healthy relationship with money based on sound — but simple — financial strategies. How? Keep reading.
o Your toddlers and preschoolers probably love to role-play! Pretend to pay them for the tea and cookies they “serve” you, so they learn that food costs money.
o Your school-age children can learn about savings, debt, commodities, and a host of other things through family board games or online games such as Animal Crossing!
Involve Them in Financial Transactions and Budgeting Decisions
o Let them pay for groceries at the store, and when you get home, show them how you pay off the credit card BEFORE you get interest charges — or let them pay and guess how much change you’ll get back if you’re paying cash.
o Take them to the dollar store as a treat and give them a small budget. Let them plan for how they will spend their money. Will they get a $2 bag of Skittles or two chocolate bars for $2? Maybe one chocolate bar and one ball of slime.
o Have them set a goal to purchase a toy or an experience they want and create a strategy for how they will achieve it. They achieve their goal by doing chores, saving, or looking for sales or coupons.
Set up a Savings Account
o Set up a regular schedule for them to deposit money into their account, so they create a healthy habit.
o Have them set aside a percentage of the money they receive from allowance, birthday gifts, or paychecks (for older kids) to deposit into their savings.
In addition to helping set up savings options for your child, Vandermeer Financial can work with you to develop healthy financial habits that you can model to your children. Pass on a legacy of financial wisdom.
Vandermeer Financial is here for all of your financial milestones, including your next vacation. We can help with your financial planning, money management, investments, and more. And when it comes time to take flight (or set sail!), we’re here to help you find the best travel insurance coverage for your trip. Contact us and we can set up a free consultation to get you started.