There is never an age that’s too young to get your finances sorted or begin to learn about taking control of your money. In fact, the younger you teach your child or teen about money, the better they are likely to be in the future. My parents taught me a lot about money when I was growing up and I owe a lot to them for that. Now with BabyMoneyFinance and SegundoMoneyFinance I have been thinking a lot about how I can start teaching them about money!

If you are wondering just how best to teach your child about finances, whether they’ve been spending too much or just don’t really understand how it all works, we’ve put together some ideas that you can utilize. Here are our top tips to teach your child about finances.

Teach them about banking 

In an ideal world, children would learn all about banking and things such as investments, taxes and savings in school. Unfortunately, this isn’t currently covered by the curriculum so it’s down to you to teach them. Discuss different banking options with them, such as Evolve Bank and Trust, teaching them all about the benefits and how different banks work for both business and personal use. By having this inside knowledge it can help impact their future decisions.

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Give them a set budget they are allowed each month

Instead of just paying for things when they want them, give them a set budget they are allowed each month. Teach them that this is theirs to spend, however once it’s gone, it’s gone. This can help them to learn the value of money and having to choose what to spend it on. By having to consciously keep track of what they are spending and not just recklessly purchasing items, they’ll learn consequences too.

Have them do jobs to earn pocket money

Another great way to get your child to learn about money is to have them earn it. By giving them jobs to do around the house they will learn the value of working for money and appreciate it more. It’s also a better reflection of the real world whereby you have to go to work in order to bring money in. This will also be a good incentive for them to do things around the house.

Get them to come shopping with you

Another fantastic way to teach your child about finances is to get them to come shopping with you. This could be for food, furniture or something else. The main point is to show them how much things cost so they get an idea of the value of items in comparison to what is in the bank, looking out for deals and price comparisons along the way. It can sometimes be hard for them to know the value until they actually see what the funds they have can purchase.

Summary

These are just a few top tips to help to teach your child about finances. Teaching your child about money is a fundamental life skill that will help them for years to come. What have you done to help teach them about money? Let us know in the comments below!

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