When is it too early to start teaching your children about the importance of saving money and how to save? Never. The sooner your kids learn how to manage money, the better off they’ll be in the long run.
To help ensure that your kids grow up understanding the value of a hard-earned dime or dollar, follow these money-saving tips for kids:
Talking to your kids about money can sometimes be difficult. Particularly if you grew up in a family where money talk was off limits. According to a 2012 study by T.Rowe Price, 77% of parents admit to not being honest when talking about money with their children and 15% admit to not telling the truth on a weekly basis.
Telling the truth to your children about money matters can help prevent multiple problems and misunderstandings in the future. Here are three simple tips to help make talking about money with your children much easier:
How to coach your kids to be financially independent.
Father’s Day is a great time for dads to talk with their young children about money, particularly ways to grow toward financial independence. Think back for a moment; how much was your first allowance? Chances are it was a modest sum based mostly on your age. It’s a pretty good bet that your parents had an “expiration date” in mind for your childhood stipend. As it turns out, many dads and moms should have put that date in writing … in a contract posted on the fridge!
According to data from the Pew Research Center, nearly one in five adults 18 to 34 years old are still getting regular financial help from parents or other family members. The tight job market, onerous student loans, and the high cost of living are all challenges fueling this trend. Even so, a good grounding in financial basics has kept many other young adults from leaving a body imprint on the parental couch.
Here are some tips on what fathers can do to teach their kids to manage money, be self-sufficient and – hopefully – even financially savvy: