As I grew up, no one really taught me how to manage the money I made. In one way or another, it somehow affected how I was to approach the concept of banking later in life. If you are going to teach kids about money you must first realize that this is going to be important to how they choose to look at money in the future.
Your child’s understanding of financial matters is a major determining factor in their future success as an adult. You must teach them financial responsibility while they are still in the comfort of their own home.
Children’s minds are like sponges, they continually learn from every single experience, from what they see and what they hear from both successes and mistakes. As they grow up, how they choose to live their life will be influenced directly by how the money is used around and with them.
There are some alarming trends happening in today: The average age to get a first credit card is now only 20.8 years and steadily dropping. Isn’t this trend teaching our youth to expect instant gratification and to buy things right away even when they don’t have the money? I feel that it also teaches procrastination and the “Don’t worry, I can pay for it later” type of mentality.
Nancy Phillips is the creator of Zela Wela Kids and has a mission to help increase the financial and life success skills of our youth globally. Nancy’s Zela Wela Kids series of children’s books teach kids many very important financial as well as life lessons in the form of stories. For instance, one story teaches the importance of dividing the money into different meaningful categories like Giving, Investing, Saving and Spending, so that all of it does not get spent at once – an important habit to take into adulthood. Another story teaches the difference between needs and wants and how a wish list for a child can translate into a dreams and goals list as they grow older. And, yet, another story teaches kids how becoming more entrepreneurial can be fun. How important is that in this economy? Nancy also has an audio series that helps adults teach kids about critical financial skills from as young as two all the way up to their teen years in an age-appropriate manner.
I thought it would be useful for to provide you with some ideas and activities that you can start right now with your kids – teaching kids money management in a fun and engaging way!
I know that teaching kids money management sounds daunting and you might not feel that you are in a position to do so, but believe me, as long as the positive message is there, no matter how much (or little) money you are talking about it will all help to shape your child’s future.