Teaching Children About Money

There are so many lessons that parents have to teach their children. We teach them to walk, to talk, to sing, to do their shoelaces. We raise our children and teach them how to be human beings, and then we send them to school for the lessons that may be beyond our reach. One lesson that is rarely taught in school beyond addition and subtraction, though, is how to manage money. Most people will tell you that they wish their schools had taught them lessons that they really needed to know and money is often in there.

Due to the fact that schools don't put the time in to teach children how to balance a checkbook or how to write a spreadsheet that helps them with their incoming and outgoing finances, it’s up to you to do it instead. You may not need to teach your children about the global crypto market cap, that’s for you to learn, but you can teach them how to become financially literate. Not only will lessons on the value of money turn into lessons on cryptocurrency when they’re older, but you might be able to stop your children from getting into incredible amounts of debt at the same time. Below, we’ve got all the reasons you should focus on reaching out to your children about money.

  1. They can learn to prioritise their finances. We all have wants, but there are things that we need that take precedence. Children don't know the differences between needs and wants, but you will be able to teach them. When they learn how to manage their own money, they learn how to differentiate between the things that they want that are important but that the things they need are a priority.

  2. Children can make better, smarter financial choices at an early age. When you teach your children how to manage their money, you can ensure that they are making wiser, better decisions while they’re young. This will carry on through to their teenage years and beyond.

  3. They will find it much easier to avoid adult debts. Other than a mortgage and an education, you want your kids to avoid debt and all that comes with it as much as possible. You should consider that you want to also avoid paying your children’s debt for them - this is a good lesson for you as much as them!

  4. They can learn to make dreams a reality. Children need to know that dreams aren't always free. If they want to be a doctor one day, it’s going to take a lot of study to get there and it won’t always be free. A financial education makes their dreams a reality one day, and whether that’s going the distance in medical school or going to the Maldives, you should ensure that your children know that their dreams won’t always be free.

Financial education is a good thing to impart in your children’s lives - start early and be successful with it!

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