Kids learn so much from their parents, which is why it's important that you start teaching your children about finances at an early age. Talking to your kids about money will help grow their knowledge and eventually they will become equipped with the skills needed to spend their money sensibly. Here are some tips to help raise money-smart kids.
 
Set an Allowance
An allowance is their first exposure to managing their own money. Let them handle and budget the money you give them. This will teach them the value of money and the importance of saving for things that they want.
 
Show Opportunity Cost
Talk about their choices, “If you buy this basketball, then you won’t have enough money to buy that video game.” Let your child weigh the options and make a decision that’s best for them.
 
Setting Financial Goals
Help them to understand the value of setting a financial goal and working towards that goal. This will also teach your children to avoid impulse purchases.
 
Open a Savings Account
Once the piggy bank is full, consider opening a savings account for them. This takes money management to the next level. As your child gets older, you can encourage them to save the money they get, whether it's Christmas money or a birthday gift, into this account.
 
Raising money-smart kids is going to take time. If you want your children to know how to successfully manage their money, share your knowledge with them. As they continue to learn about money and budgeting, they will grow into financially responsible adults.
 
It's never too early to start saving. Check out our Early Advantage account, a children's savings account that encourages young people to save and helps parents teach children about money. It's easy to open an account and start building a savings today.