How to talk to your children about finances
Financial education is a subject often not taught in school, so it’s up to us to ensure that our children are properly educated on finances before they go out on our own. When's the best time to start? As soon as possible!
Forbes recommends teaching children how to allocate money by using a simple piggy bank concept. Use three mason jars to make piggy banks, and label the jars as follows:
- Save: Explain to your kids why it’s so important to save. If it’s possible, teach them to save one quarter of every dollar they make!
- Share: The “share” jar is a great opportunity to teach your kids the importance of giving back to the community. Tell them about a few local charities and encourage them to choose one to donate money to each year.
- Spend: Don’t worry, it’s not all work and no play! The money that’s left after saving is what your kids have to spend on the things they want. You can reward them for saving by taking them to a store and letting them pick out an item that they can afford with the money in their “spend” jar.
By using the mason jars, your children will be able to see how much money they have allocated for each category. Adding this visual is a great way to begin having those financial discussions with your family.
Let's prepare the next generation of savers for a brighter future!