Financial Literacy Month is about helping Canadians establish healthy financial habits. When it comes to your finances do you ever find yourself thinking “Wow, I wish I knew that years ago!”?
That’s why it’s never too early to start teaching kids about money.
That brings us to this week’s topic – How do I teach my children about money?
Teaching children about money is an ongoing process that helps them to understand money management early on and provide helpful skills to prepare them for adulthood.
Here is our step by step guide to help you get started:
- Get them involved
- Teach your kids about what the different methods of payments are and how they work (ie the debit card – and the idea that there is always money there – money doesn’t grow on trees).
- Talk to them about the budget and how much things cost and where the money comes from. Keep them on a budget (needs vs wants).
- Have a conversation about money and budgets early on
- Don’t wait to have a conversation with your children about how to budget, teach them how to budget and keep the conversation going.
- Talk to them about credit and how it works
- Tell them about the importance of having an emergency/savings plan.
- Give your kids an allowance for work
- Pay your children an amount that you are comfortable with when they do chores around the house. If they do not do the chore, then don’t pay them as this teaches them that they must work hard to earn money.
How do you teach your kids about money? Share with us on social media for a chance to win a $500 prize using the hashtag #GTKnowledgeisMoney