Happy Tax Day! Most people in the U.S. have money on their minds today, which is a great opportunity to think about discussing money matters with your kids. For many parents, talking about finances with their kids is daunting, but it's also an important step toward teaching them to lead financially responsible lives.
Scholastic Parent & Child magazine has a great article this month about teaching kids about money. You can read the full article here, but I'll outline some of my favorite takeaways below!
- The basic skills underlying money smarts (like delaying gratification and distinguishing a need from a want) are typically set by age 7!
- Using cash around your kids rather than credit or debit cards can help them to visualize how much money is actually going out when you spend.
- Creating a list of items you need to buy at the grocery store and then showing your child how you shop from it, rather than just putting anything you see in the cart, can help to reinforce the idea of planned spending.
- Teach kids about saving by helping them come up with a plan to save for something they would like to buy, and then track their savings with them on a chart for visualization.
- Kids need to make purchasing decisions on their own to become smart consumers. Even if it means letting them make a purchase that they come to regret later, let them explore and learn the lesson.
- Even little kids can benefit from an allowance, as long as they understand that it's not free money. Find little chores, like straighening up the coats and shoes in the mudroom, and assign a small value to each.
- Introduce kids to the idea of giving to charity, whether with money, time, or goods.
