Sept 26th 2017 - by Amanda Perkins
Learning about money at an early age is a huge benefit for children as they grow up and begin working. Many Canadians don’t learn about the importance of money and finances young enough and unfortunately it can come back to haunt them later in life. This can be evident in soaring credit card debit, lack of savings, little to no emergency fund and an overall lack of understanding on how to financially plan for our futures. It’s not that you have to know it all, but it’s important for our children to feel empowered, knowing that their finances are important. Understanding and monitoring their money right from their first allowance can reduce much financial stress in the future.
If we can help them get started with financial success at a young age we can pave the way for a financially responsible adult of the future. Children are sponges and take in everything we do in front of them, including our shopping and spending habits. That can be one of the only parts of your money they actually see. They won’t likely notice us paying bills, missing payments or applying for new credit or loans. It’s important that we teach them the difference between needs and wants, how to compare prices and the value of your money.
Think about teaching your kids the importance of counting their money. When teaching them about saving, not only is it important for children to be able to add up their money and how to spend it, but also teach them about patience and the time it can take for their money to reach their goal. Setting goals can be a great way for kids to see the importance of saving up for that item. Often when a child is forced to wait for an item they consider a need, the pendulum shifts to a want and that item isn’t nearly as desirable by the time the funds have accumulated. Great life lesson that many adults struggle with. All of these tips will help develop healthy spending/saving habits so crucial to financial success later in life
What tips do you offer your children when it comes to financial literacy?