Do you have little ones? Maybe your eldest child is reaching the stage of their development where they are starting to understand the value of money. If this is the case then you may want to start teaching them about the rights and wrongs of spending. But teaching finance for kids can be tricky in this ever-changing world of bitcoin crypto-currencies and digital banks like Revolut and Monzo.
Some commentators predict that by the time a child born today reaches adulthood cash may be a thing of a past as we all pay for things with our mobile devices and smartwatches.
Here’s what you need to know about how to teach kids about money.
1. Give Them Pocket Money
If you just buy everything for your kid, how can they ever expect to learn about the value of money? Giving them pocket money might be a hard step for you. It means you have to take it away from them when they behave badly. You might quickly realize that it ends up costing you more money in the long run.
When your child inevitability spends all of their money on wasteful objects, you might then have to fork out to spend money on objects of their desire later in the week.
Try to be firm with your kids and explain to them that the money they receive in pocket money is all the money they are are going to get for that week so they have to spend it wisely.
This will ensure they don’t get into debt when they are older. They might then have to look for a debt consolidation firm like Debthunch – read debthunch reviews here – to help them out
2. Play Games With Them
There are many games you can play with your children to teach them the value of money. Monopoly is one game involving fake money. But you could also set your own task. You could give your elder teenage children real money and a list of objects they have to buy.
If you have two children you could give both your children the same amount of money and say the child that brings back all of the objects on the shopping list for the least amount of money is the winner.
3. Give Them a Pre-Paid Card
Debit cards are the way most people pay for things now, not cash. You might want your children to understand the value of having a debit card. However, this comes with risks. If it’s their first card they could end up getting into lots of debt by spending more than they have. This is something that Americans suffer from more than most. The average American has $38,000 worth of debt.
A pre-paid card means that your child can only spend what you top it up with so you don’t have to worry. It also means you can keep track of what they are spending their money on.
Finance For Kids: Train Them For the Modern World
The world is changing and we all have so many choices about how we spend our money. As a child in this world, it can feel overwhelming.
In order to make sure your child is properly trained, educate them from an early age with pre-paid debit cards, fun shopping games and pocket money.
If you are interested in reading more about finance for kids or how to cope with kids with money be sure to check out the rest of our site.