Financial lessons kids should learn in kindergarten
It’s never too young to start
We all know the importance of sound financial planning when we get older, because basically we need to make our money last and stretch in order to make ends meet, but it’s also important to realise that instilling a sense of monetary worth into our children can help them develop a more positive relationship with cash as they get older. There are a few key financial lessons kids should learn early on, and this can be done through games, lessons, and fun activities, so they learn without even realising it. Helping them develop a mind-set that money is important and shouldn’t be splurged is crucial.
If you are keen to advantage your child to understand the value of money, to help them in their future, here are a few lessons you should be helping them understand early on in their lives.
The value of money
Of course we want to spoil our children, they’re our little darlings and they deserve the best, but giving them everything they want can be unhelpful in the long run. Developing an understanding that money doesn’t grow on trees is important early on, and one of the most important financial lessons kids should learn is that in order to have nice things, we have to sacrifice a little by working for it. Avoiding spoilt child syndrome is key.
If you don’t have the money, you don’t get the treat
Giving children spending money each week, which they earn by doing chores for example, is a great way to develop independence, and also helps them understand that you need the right amount of money in order to have the things you desire. For example, if they want a new game, they have to save their spending money, and not borrow it, which helps them avoid a credit focused mind-set later in life. Helping them avoid the idea that if you want something you just put it on a credit card is one of the most valuable lessons you can teach them. Being in debt is no fun!
Budget, budget, budget
Making your money last the amount of time it needs to last for is key. Another important one in the list of financial lessons kids should learn is just how to make money stretch. Pocket money is again a good way to do this, and giving them a set day as to when they receive it, and not giving extras to top it up will help them understand that what they have has to last.
The important difference between ‘I want’ and ‘I need’
These two beasts are not the same, and it’s important to help your child understand the difference between the two early on. One of the most important financial lessons kids should learn is that wanting something is definitely not the same as needing it, and that things you want should only be bought when you have the adequate money to do so, with needs always coming first.
Money isn’t everything
Financial security is extremely important in life, it’s how we make sure we have enough money to pay the bills and put food on the table, but having a huge amount of cash doesn’t guarantee happiness, and this is something we should be teaching our kids early on also.
The above five suggestions are some of the most important financial lessons kids should learn as early as possible, and if you can help instil this mind-set, you can be sure they will have a happier, healthier relationship with money in the future.
At IQ Accountants we’re all about being smart with money, and think it’s a great idea to learn as early as possible the importance of money and savings. If you’re not that great and need a little helping hand with money and numbers to get your finances in order, we can provide the key accounting and business services advice and support you need. Call us today on 5576 0011.