We all know the cliché of the 20-something child living in their parents’ basement because they don’t have the money to move out. Fortunately, this is 100% preventable! The trick is to start teaching your kids about money—and how to save and handle it—early. Here are some useful tips.
Start A Saving Habit
Teach your kids to save. It doesn’t have to be every single nickel, just a portion of their allowance or money they’ve earned. And make it visual: a good old-fashioned glass jar or, better yet, a minor savings account where they can check the balance and see it grow.
Set A Goal
A magic number works magic. Don’t set it too high that it seems unreachable, or too low that it’s reached without any effort. This is a great way to teach kids the value of each of their coins, so that they can keep a running balance. It’s also a great time to teach them to make saving an on-going habit, saving beyond their goal or setting a new one.
Teach Them To Budget
Money doesn’t grow on trees, and even if it did, you’d only be able to pick so much of it. Learning how much things cost and how much you have to spend helps kids learn to allocate their funds. A great way is to involve them in simple budgeting around the house: Get them to help make a grocery list that has to fit into a certain budget, then go to the store together and stick to it!
Set An Example
Kids learn by watching—and yours are watching you. So be sure to let them see that you save and follow a budget, too. Show them the basics of managing money. It might be no laughing matter, but that doesn’t mean saving can’t be fun!