Show your kids how you save, spend, invest, track, budget, and so on. Talk openly and often about your finances, using the ideas in this post as starting points.
Young kids might enjoy starting with a classic ceramic piggy bank. It’s fun for them to drop coins in the slot, hear the sound of the coins dropping in, then pick up the piggy bank to feel how full it’s getting.
Eventually, your kids will be old enough to manage their investments. But you don’t have to wait until then to put their money to work. You can get them started with an investment account much earlier—perhaps as soon as they have some extra birthday or holiday money.
One of the best ways to do that is to take them shopping with you. You can then weave in financial literacy lessons by showing them how you spend less on the things you need to buy. Here are some ideas: - Take Advantage of Discounts - Pay Attention to Unit Prices - Compare Brands and Prices
I firmly believe that being able to embrace delayed gratification is foundational to becoming successful with money. Through delayed gratification, kids learn to: - Develop a long-term mindset. - Make money decisions thoughtfully. - Avoid impulse spending.