It is very important for every parent out there to talk to their kids about money as early as possible. However, there are certain things that you should do and never do while you are doing it. So, to help you out, here are the 5 rules when it comes to talking to kids about money.
1. Always think first
Before you even discuss money matters to your children, it is important for you to ensure first that what you are about to say to them are aligned with your actions. For example, don’t tell them to avoid spending lavishly if you, yourself, cannot even control the urge to purchase something that you don’t even need. Don’t just speak values but instead, show it.Also, it is very important for you to explain everything to them clearly and in a manner that they would be able to digest easily.
2. Provide your kids an allowance
Well, there is a need for you to know that talking to them about money would not be enough for you need to let them experience themselves and realize the importance of money. You can do this by simply providing them an allowance and providing them guidance on how they can spend it wisely and save money at the same time. It is essential for you to give them a reasonable amount of allowance for the week or even for just a certain occasion.
3. Converse, not lecture
Instead of just talking and talking about money in front of your kids, engage them in a conversation. You should not be the only one speaking for they should also share to you what they think about it. Ask them questions and hear their answers. On the other hand, you can also ask them if they have questions related to money or something that they are curious about regarding it. That way, you can keep the conversation going and the more meaningful it would get.
4. Just keep talking to them about it
Always remember that you are talking to a child and so, you cannot expect that they would be able to understand everything that you have told them once. So, you need to spare some of your precious time to talk about it repeatedly. Nevertheless, it doesn’t necessarily mean that you should talk about it everyday for if you do, then it would only irritate your child and do the exact opposite of what you told them.
5. Make sure that you have everything covered
Always make sure that you have everything covered as you talk to your child. Don’t just teach them about spending money but also teach them about how borrowing one works even at an early age. After all, believe it or not, a lot of kids out there ended up having a debt to pay for their education expenses and daily living.
By simply sticking to the 5 rules mentioned above, you would be able to raise a child who is responsible enough to manage his/her own money.