Financial conversations and money management may not be a parent’s first thought in life lessons to teach children, especially when they’re young. However, educating and talking to your child about money management can be incredibly beneficial and essential.
If you’re wondering what the benefits can be from this idea, you’ve found the right place. Today I’m going to give you some of the benefits of teaching your kids money management as well as a great tool to help you do so.
The Benefits of Teaching Your Kids Money Management
The most obvious benefit of educating your kids in finances is the preparation you’re giving them. Kids will need to understand finances and money management to use in their teenage years and adult life. It gives them valuable experience and knowledge that will be useful in many aspects of their lives.
Start A Pattern
It’s not common for kids to be educated about finances, due to the fact that most schools don’t discuss it and the general home avoidance of the topic, so by teaching your child this information you can inspire a pattern. Kids that learned about this topic at an early age are more likely to carry on the practice in their own children someday.
Talking about money management and teaching your kids can be super easy. It can be something as simple as starting an allowance or chores to earn money or talking to them about your own financial habits. It’s especially easy when you’re handling this with younger kids because you can keep the talk simple.
Gives Them Stability
Financial life carries a part in so much of our lives as adults, from stress levels to the likelihood of crime to job life to home life to relationships and more. By educating your child on this topic and how to discuss it better, you’re giving them the opportunity to have much more stable situations in finances and in areas that overlap.
You Learn Too
Sometimes you may have to learn about topics that you’ve never really learned about or looked at in your own finances to be able to teach your kids about them. So you can learn more about your own habits as well as improve. This is particularly true if you have to do more research to educate your kids better on the topic.
Realistically, finances and money management has so many options of education and a ton of great benefits to parents and children when they’re talked about more openly. Your kids will surely thank you for having this education.
Most schools aren’t going to teach them these pertinent life lessons, so it’s up to you! Hopefully, this inspires some of you to consider and research what you can do to help your children begin learning this information or ask your teens about what they know so far.
If you’re not sure where to start, I also have a good suggestion to get you on the right track in educating them.
Kiddie Kredit is an app dedicated to helping families learn more about credit and finances together in an easy way. It shows us the importance of financial literacy and allows you to have an interactive credit experience. You can create a custom chore list in the app with deadlines, and if your child completes these on time and well they earn a kredit score.
These scores are similar to the FICO credit score system that your kids will have to deal with when they grow up, so they’re learning a format that will be useful later on. And you can add rewards (monetary or non-monetary) that children can receive for their credit score. It’s a simple way to use a usual household item-chores-to simulate something that your kids will need to know and utilize in the future credit scores. They also have a preteen curriculum available.