How to Raise Kids in a Smart Way - Dave's Wallet

How to Raise Kids in a Smart Way

Kids are ready to learn about money as soon as they are old enough to know where babies come from. Parents are the most influential forces in the lives of kids. So, practical knowledge of financial literacy should be impacted from home, not only at school. Although financial education is being brought into the classroom, it is important that parents teach kids a more practical approach of money management.

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Do you feel weird about talking to your kids about money? Here are few helpful tips to get you started.

  • Savings Account: Opening a savings account for your kid is the first big step towards their financial literacy. Open a bank account in their name and give them the bank card. This would make them feel responsible for the money in it. As they put in droplets of money in the account, help them keep track of the growth.
  • Paid Chores: Let your kids earn their allowances. Don’t just give it out to them. Give them chores and break down how much they have earned for performing each one. This would develop their work ethics and make them understand the value money.
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  • Rewards for good performance: Whether it’s good grades, a local competition, or a spelling bee, reward your kids for excellence. This would help them understand the value of being the best in whatever they do.
  • Guide their spending: When your kids are ready to spend their money, help them write a list of what they want to purchase and ensure that they stick to it. This would teach them the art of budgeting and planning.

Financial literacy is a long journey that is best started at an early age. Set your kids up for a great financial future by teaching them to be money-smart.