If you don't teach your kids how to manage money, bad experiences will. And that's a risk you don't want to take! Here we share some simple practices to start involving your children in the subject of money.
1. Use a transparent jar to store money
Learning about the importance of saving is the first law of personal finance that you should instill in your children.
Show them how a savings plan can buy things they like.
The piggy bank is a great idea, especially when you use a transparent jar where they can see their money grow.
If you have older children, you can make use of technological tools that will motivate them to save, for example you can set goals in a financial platform that makes saving a fun habit and the best thing...it gives you returns.
2. Lead by example
A Cambridge University study found that children's money habits are formed by the age of 7.
So be careful about the image you give about your own relationship with money.
How much do you complain about the lack of money? or how much do you argue with your partner about money?
Show them how you use credit to your advantage, how you solve an unforeseen event or simply how you put together the family monthly budget.
3. Show them that things cost money
You have to do more than just saying: "This toy is too expensive".
Make them pay for some toys with theor savings as an excercise.
This lesson will have more impact than anything you can tell them every time they ask you to buy something for them.
4. Teach them about the cost of opportunity
This recommendation is for older children, who can understand the long-term benefits of one decision or another.
Explain to them that if they buy one thing, you won't have the money to buy another one.
5. Promote the value of work
Don't just give them money. Paying them for chores they do around the house helps them understand that money is earned, not just received.
There is nothing more rewarding than raising responsible children, with all the necessary tools to have a plentiful adulthood.
Leave them the best inheritance, financial habits that allow them to achieve any goal.
