financial literacy for kids is very important, especially on days like these when teens are excited about managing their own money. gone are the days when you had to micromanage the kids regarding how to keep their money. today, kids know more about types of investments than their parents, and no, we’re not kidding about it.
when the internet made a grand entry, it took a while for people to adapt and get used to social media. however today, there are just so so many ways in which we can all use the internet and making money out of it is by far the best one. kids these days have become more outgoing and they’re utilising the best of their talents to make bucks out of it. so if you are a parent whose lil one is earning, it’s about time you teach your kids about finances and better money management.
top ways to teach financial literacy to kids
- make your kids understand their wants and needs in a fun way
- ask your kids to make a ‘dear diary’
- tell them the power of savings
- allow them to manage their money
- give them exposure to investment
- take yo’ kids to shop with you
- ask for kids for advice in financial matters
- treat them once in a while
- get them an akudo card
fellas, buckle up your seat belt cause we are goin’ to give you a sweet ride about financial literacy for kids. Here are some ways that every parent can follow-
1. make your kids understand their wants and needs in a fun way
to begin the process where you give the pocket money to your kids, it’s very important to help them understand the major difference between wants and needs. Make them learn to prioritise what do they need to spend on first. now if they happen to spend the money wisely and end up saving some bucks, they can spend it on things that they want.
every teen love fun parents and honestly, the whole listening and understanding process becomes a lot better if you make your kid realise the value just like acting. throw an act or two, make them laugh, finance can be fun if you make it 😉
2. ask your kids to make a ‘dear diary’
only that this dear diary can talk mostly about how are they spending their money. tracking expenses on a diary is the cutest and most opted approach, we won’t really be wrong even if we say that it’s kinda influential. Yes honestly, just buy a super aesthetic diary and your kid will come running watching what you’re doing with it and ka-boom they want to do the same in no time.
apart from that reason, also tell them that writing about the things they buy would really help them in having an insight of how did they spend the money throughout the month. it would be an eye-opening experience for them, therefore making them spend wisely the next month.
3. tell them the power of savings
savings has an insane amount of power and no one can deny it. whether we go back to the days when a small piggy bank could make us enjoy our local disneyland or buy a lotttt of our favourite toys. now that we have made this piggy bank digital, it’s about time we do some savings as well.
the best way to give an example of savings to your kids is by adding it yourself. show them jewellery that you bought after saving the money in the rice box or the nice car parked outside that you bought by saving the bucks you could’ve easily spent. finance for kids is a very smooth matter, the more examples you give, the better would your kid understand it.
4. allow them to manage their money
one of the most common mistakes every parent make is that they start micromanaging their kids on how to spend, where to spend. remember that if you go too hard on them, it might only make them go behind your back. let’s suppose you gave 1000 to your kids every month as pocket money and start keeping a note of how are they spending and where are they spending, sounds a bit too much, doesn’t it? Just give them the money and tell them that they have to manage their personal spending for the month.
it’s highly likely that in the first few months, the teens will splurge on silly things but after a month or two, they will become a master in how to spend and where to spend (unless it’s about their crush, in that case, they would be ready to make some compromises :p)
5. give them exposure to investment
financial literacy for kids can come easy if they have guidance on the right way to invest their money. Whether we talk about mutual funds or cryptocurrency, kids these days are more or less aware of the term, all they need is a little learning from you.
tell them to start with basic reading and make a list of top 10 projects, tell them the pros and cons of every project in crypto. now we’re just gonna repeat what we have been constantly repeating, let the kids make their own decisions, let them make the mistakes for a while and learn from it. however, obviously, be there to shadow them so that they know what’s right.
the key is to start a small investment, you can ask them to save a little bit from their pocket money and use it where it grows. money sitting idly in a bank or piggy bank is no good these days, you can easily make something out of it. 😉
6. take yo’ kids to shop with you
no no, we swear your kids didn’t bribe us to put this point in here. When you expose your kids to the real world where it’s not all words and learning but more like practicality and action, they realise how important money is. the topic of finance for kids becomes very interesting when you start bringing things to action.
when you’re shopping, make them learn how you do it smartly. if there are two products, make them choose the cheaper one over the more expensive ones. show em’ a trick or two to shop smartly and there you are, with one heck of a smart kid.
7. ask for kids for advice in financial matters
don’t you feel special when your little ones ask for your advice in their matters? you do, right? so is the case with your kids. you can easily scatter the financial literacy for kids when you explain a situation to them and seek their help. this would not only give you a reality check whether or not your kid learnt something but well, the advice might actually be good.
get them involved in the family finance, ask them how do they think you can expand your empire. ask them where do they think investing might be beneficial. kids these days know about crypto and its pros and cons more than you do so never think that a good idea might not come from their side.
8. treat them once in a while
if you’ve finally made it here, it means you have almost reached the end of the session before we reveal our big secret. you have taught a lot to your kids and as they say, a treat makes everything much more interesting. financial literacy for kids become very friendly if every parent started treating their kids for acting well.
give them some extra money so that they can buy something they like, ask them to splurge it. you’d know they have gotten super smart if they invest it instead. Take them on a food expedition or a shopping spree, it’s really important to go a little wild once in a while.
9. get them an akudo card
of course, we saved the best one for the last. when you get your kid an akudo card, you’d be following all the above steps just in a simpler and smarter way. getting a prepaid card for your kid would help them understand where do they have to spend the money, they can track all the expenses in their passbook which saves you the cost of a diary :p
and that’s not it. the super attractive cashback and rewards are what makes akudo the smart gen card. so beat the traditional ways, gift your kids an akudo card this time and make them take a step towards financial independence.
financial literacy for students is a much-needed initiative today. If the kids start spending from an early stage, by the time they reach the prime of their lives, they’d already have so much that they can buy anything.
financial literacy for kids become smooth if done right. You are the parents of the smartest generation there had been so it would be better if you start becoming the fun version of yourself even if it is about giving the tough life lessons. we have been living in the myth that we should leave the heart behind while we’re discussing finance. well, we agree to disagree. if done perfectly, finance is the thing which you can enjoy the most.
we mean, everything that makes you happy or makes your life funn comes via money, right? so that was it. hope we helped in making this a little bit easier. Go bond with your lil ones over the fun of finance.
hope you loved this blog. you might also like:-
- 6 Tips for Busy Parents to Teach their Kids About Money
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- top money management tips to prepare your teenager for the future
- 4 steps you can take to stop your child from overspending
- top 9 ways how parents can teach their kids about personal finance
- What Are the Advantages of Giving Pocket Money to Kids?
