- Start a habit of saving money. Whether someone gives your child five bucks or you just got your first paycheck, whatever money they are making (or receive), try to have them save at least 10% in an account (do not touch!).
- Start a budget. Help your child open up your own savings account and learn the basics of having a bank account. Help them start a budget and learn to manage it.
- Shop around. Teach your kids this—it’s tempting to see something we like and buy it on the spot, and that’s called instant gratification. But if you go online or wait a couple of months for a sale, that same item may cost less which saves you money.
- Avoid credit cards at all costs. You should start talking to your child about credit in their teens. If they plan on buying an awesome car, buying a house one day, or being taken seriously in any business venture, their credit score will play a huge role in how much financial companies will trust your spending habits. Have these discussions and help them understand the importance of having good credit.
- Focus on earning. Kids need to know that saving is very important, but if they’re not earning money, they won’t have any to save. Have them start thinking like an entrepreneur at an early age. Help them open a lemonade stand, car washing business or pet walking service. The key is to offer a service that people are willing to pay for.
- Expect more. People usually make the amount of money they feel they are worth, and most people sell themselves short. Teach children to have a high self-image, and they will create a world for themselves that meets that self-image.
- Download an app on your phone. There are so many apps for managing your budget and savings on phones nowadays that you can track your money on the go. Get in the habit of keeping tabs on your spending habits. Kids will have more fun doing this on their phones and tablets.
This content is restricted to site members. If you are an existing user, please log in. New users may register below.