Why teaching kids about money from a young age is important

Mums Tips

Parenting Skills

Published on Monday, 27 February 2023 12:00

Last Updated on 27 February 2023

Monica Costa

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One of the things that you should be doing is teaching kids about money from a young age. Of course you don’t have to tell them all of the ins and outs of your financial situation, especially if you are struggling at the moment because you don’t want them to worry. But, you should be teaching them the basics of money management and then increasing their knowledge as they get older. In this article, we’re going to be taking a look at why it’s important, so keep reading if you would like to find out more.

They Need To Understand For The Future

The first reason is because they need to understand for their own benefit in the future. Some people have no clue how to manage money when they leave home, and that is why they end up in so much debt, not knowing how to get themselves out of it. There is debt help for people in these situations, but it’s best if you can avoid this entirely with your children.

As a parent, it is your job to ensure that your kid has all of the necessary skills when they go off to live on their own, and that should include things like doing their own washing, cooking, cleaning and managing money.

 

It Helps Them Develop Their Problem Solving Skills

Understanding how to manage money can help them to develop their problem solving skills from a younger age. You don’t have to give them your bank statements and get them to figure it out from here, but you can start by giving them some pocket money, and letting them choose how they are going to spend it. Teach them about choices and consequences and what it means if they want to spend all of their money in one place for example. They might not like it in the beginning because they are bound to make some mistakes, but it’s good for them to learn.

 

Understanding The Difference Between Want And Need

Last thing that we’re going to say is that you can teach them the difference between want and need. When we are young, we only really think about the things that we want and spend all of our money on those things, but you have to teach your child to prioritise needs first. Sit down and talk this all through with them when they are old enough to understand bills and such, helping them to see that there are some things that are more important than others. 

 

We hope that you have found this article helpful, and now see some of the things that you should be doing in terms of teaching kids about money from a young age. It’s important that they learn about managing money when they are young so that when they grow up, they already have a solid idea of the best ways to do this. It’s a great way to help your kids stay debt free as much as possible! We wish you the very best of luck.