Teaching your children to be financially successful is a challenging and rewarding experience. What are the keys to teaching kids about money? Connecting with others who share the same passion strengthens our shared effort.
Recently I was featured in Sammy’s Childhood Money Memories Interview Series. Sam X Renick is the driving force behind Sammy Rabbit and the Dream Big Club.
The question of how to teach kids to manage their money takes may forms. However we help our kids learn, there are many keys to teaching kids about money. Remembering to focus on these greatly improves our efforts helping us maintain consistency throughout the childhood years.
Keys to teaching kids about money
- Develop good habits. I encourage parents to require their kids to keep track of their money as a number. This is the basic concept in my book, The No-Cash Allowance.
- Encourage strategic life skills. Successful personal money management requires good decision making. Kids who are in complete control of the money learn by experience how each decision affects their bottom line.
- Save money with purpose. The reason people save money is to have it available for a future purpose. When kids make their own decision to “not spend”, they save for a purpose. Saving for short-term goal rewards kids for their decision. This bolsters their decision-making confidence because they reap the benefit in the near future.
- Read. Kids who can read possess the most powerful tool for success in life. We need to encourage reading and do everything we can to be sure our kids can read.
According to a T. Rowe Price Parents, Kids and Money survey 68% of parents turn to others for advice about talking to or teaching their children about money.
Teaching kids about money is essential for their future. Recognize that the keys to teaching kids to manage money are basic life skills. Parents don’t need to be financial experts.There are many of us willing to partner with you to help. We want the next generation to be as prepared as possible. Let’s work together.