The recent pandemic has forced schools to shut down ahead of schedule causing your kids to stay home even longer than you envisaged. You can put this break to good use by utilizing it to teach them lifelong money lessons that will shape the financially smart adults they’ll become.
The steps below will help you get these lessons across.
1. Establish a savings culture
Teach your children to always save a part of any money they receive as stipends, from family or any other known sources. Let them start with a piggybank and progress to a Mutual Fund account as they grow older. Ensure to share their account balances with them periodically so that they see how their money is growing and be encouraged to keep up the savings pace.
2. Encourage them to set savings goals
Saving is significantly easier when you are saving towards a goal. Teach them the value of financial goals. Let them identify something they really want and save towards acquiring it from their allowance. Eventually, when they are able to buy it, it’ll fuel their resolve to make saving a habit.
3. Make them earn money
Teach them the importance of work and how it helps to generate the money that funds fine living. You could drive this home by giving them specialized tasks that are not typically part of their usual chores and opt to pay them for doing it well. When they get matured enough to work during the holidays, encourage them to get safe holiday jobs within a reasonable distance.
4. Celebrate their saving milestones
Everyone loves to be praised when they do well. Celebrate their saving milestones with praises and gifts. If your child saves consistently for a whole school term, for instance, you could take that child to the movies or something similar as a reward for consistency.