Episode 162: Learn helpful tips for raising money savvy kids. We’re talking about why you should teach kids about money and how to go about it, with Rocky Lalvani, a Certified Profit First Coach.
Why It’s Important to Teach Kids About Money
Teaching your children about money sets them up for success as adults. As parents, you want to provide for your children so that they don’t face the same struggles as you. However, this can sometimes backfire as it doesn’t give kids context for how money works.
Teaching your kids about money helps teach them grit and financial savvy to help them make smart money choices for their entire lives.
Tips for Teaching Kids About Money
The key to teaching kids about money is putting the onus on them to manage their funds and learn from their failures. Whether you opt to give them a set allowance or earn money from chores and tasks, letting them spend and save their own money rather than buying things for them helps them make strategic decisions.
Help them save some money by setting up an envelope system that lets them set aside money for something bigger. Teaching them to put aside 50% of their birthday money and allowance helps give them context of how their savings can grow.
Having conversations go hand-in-hand with instilling positive money habits in children. Be open to having frank conversations and answer questions. Your kids will learn how to manage money, and you’ll learn how to say no.