Every parent wants to raise children who will be healthy and happy, however, in addition to these priorities, everything comes down to certain life skills that are crucial for the child to have a good life in the future. One of the most necessary skills is certainly how to save and manage money rationally, in short, financial literacy. Many children whose parents did not teach savings, finances, investment, and proper use of money later fell into various debts and had a lot of stress during their lives, all of which could have been avoided by teaching finances from childhood.
To prepare your children for the future, one of the best options is to give them a credit card for kids, where everything is in one place within a mobile application that is quick and easy for every child to learn and use.
Start talking about money from a young age
First of all, to understand what money is, children must know how money is earned and where it comes from. Money is necessary for a normal and functional life, but managing money properly is a matter of habit and skill. Children absorb everything that happens around them like sponges from an early age, so they should form certain habits around finances from an early age. Children must be aware that money is earned through hard work, that it is not abundant and that money must be treated with respect
Give them allowance and responsibilities
Children learn best how to manage their finances if you give them a certain amount of money on a weekly or monthly basis. We suggest that you initially give the children an allowance weekly, and when they get used to it, then put it monthly, because it will be a bit more demanding for them to distribute the money throughout the month. Children will learn to value and manage money sooner if they receive a monthly allowance rather than a weekly one. Of course, all this comes with certain responsibilities, such as taking on additional household chores, curricular and extracurricular activities.
Hand them over a kid’s debit card
One of the best, most comprehensive, and fastest options for learning to create a savings plan, invest, earn, spend, and donate money is through a children’s credit card. The card was designed together with a mobile application for both children and parents to have all kinds of finances in one place and always available. Parents have complete supervision and control over their children’s transactions, and at any moment they have insight into what the children are doing with their money.
There is a savings plan option where parents determine together with the children the minimum amount and percentage of money that the children must put into savings each month and this money cannot be used without the parent’s approval.
In addition to having all these countless possibilities, there is a special part that develops various sets of skills in children, namely the activity tables that are adaptable to each age of the child.
The process of opening an account is quick and simple, parents provide their children’s personal information and open an account in the child’s name, and after paying money into the same account, it is ready for use.
Encourage them to find work
Children must earn their own money because that way they will appreciate it more. Smaller children can do some minor tasks, such as helping in the household, looking after the neighbors’ pets when they are on the road, walking the dogs, watering the flowers, reading books to other children, selling drawings, having a lemonade stand, and many others.
While older children have a much greater choice for part-time work, because the money their parents give them can’t cover all their expenses. Older children can babysit, take care of and spend time with older people, work in a clothing store or cafe shop, sell ice cream, instruct other children in school subjects, shovel snow, mow the grass, take care of the garden, and many other jobs.
Inspire them to save for a higher goal
Most children start saving money in the beginning, but with time they lose interest and lose motivation. To prevent this from happening to your children, they must have a goal to strive for which will motivate them to persist in saving. You must talk to them to find out what motivates them. Some children are saving for college, a trip to Europe, a certain course, a car, or their first property. Desires and goals can be various, but it is of crucial importance that it is their own goal that will encourage and motivate them to save and persist in fulfilling it.
The post Raising Financially Savvy Kids: A Guide to Teaching Money Management Skills appeared first on The Startup Magazine.