·
Spend a
little, save a little. Whether receiving a birthday gift or allowance money,
teach your kids to get into the habit of saving a portion of what they receive.
Help them create savings goals like the purchase of a bike or creation of a
college fund.
·
Don't
worry about what others have. Teach your children to avoid spending money to
follow the crowd. Take a look at the unused toy bin to demonstrate the point. Chasing
the need to own $200-$500 sneakers can lead poor financial habits in the future.
·
Be money
mindful. Remind your child to think before they spend money. Help them
understand that wanting something doesn't always mean that they need to have
it. You can also help them to prioritize their spending. For example, saving
for the running shoes your child might need for track may be more important
than the money he or she would spend on a night at the movies with friends.
·
Learning
about finances is fun. Set aside some time each week to learn about a new
personal finance topic together. You can help your child learn about checking
accounts, setting up a budget, getting a small loan, or simple ways to start
saving. Getting them interested in financial topics at a young age will help
them throughout their lives.
·
Tax
talk. If your child is old enough to earn a paycheck, teach them tax basics. Walk
them through their paycheck. Social security, Medicare, and withholdings are
new concepts for them. Help them understand how the money is used. Don't
overlook other taxes as well. They also need to know that sales tax should be
factored into the cost of items they choose to purchase.
It’s important to keep the conversation going. Encourage your children
to ask questions, and get them involved with your household spending. There are
many ways you can help them develop a healthy understanding of personal
finance.
