Most parents focus a lot on providing their kids with all sorts of comfort and the best education by sending them off to the best private schools; however, there is one topic that most parents don’t really focus on talking about with their kids.
The topic that seems to be missing is money. Understandably, money is a tough subject to discuss, especially when parents feel they don’t know anything themselves and hence might be afraid of teaching their kids the wrong things about money.
While talking to your kids about money, the goal is not to become a financial drill sergeant; instead, the goal is to keep a few guidelines in mind and when the opportunity comes, present the guidelines to your kids in a way that they remember.
Most of our learning is hidden in everyday teachable opportunities. So, besides looking into an investment account for kids, here are a few rules to make your kids money smart.
Believe it or not, many children who are of the age of three are actually capable of grasping financial ideas, such as the ideal of value and exchange. Although, their understanding of the concept might be very rudimentary.
At this age, kids are able to delay gratification and make the right choices. Kids at this age can understand a lot and sometimes more than parents might realize. That said, this age can be great for teaching them where the money comes from and how to pay for things, especially when playing.
Doing so will make them understand that things have value and that you will have to pay money to get those things.
Teaching Your Kids Patience
The age of three is also a prime age to teach your kids about patience. There is a famous example that you might have seen before where parents leave their children alone with a marshmallow and tell them that they could get another marshmallow if they show patience and wouldn’t eat the first one in their absence.
What is interesting is that according to research, the kids who showed patience and didn’t eat their marshmallows right away have a higher success rate. Those kids have better relationships as adults and higher levels of education and earn more money.
A great method to teach your kids about patience is to keep reminding them that there is a light at the end of the tunnel, and they can get what they want if they are patient. You can also show them fun ways to distract themselves and make time go faster.
Age three is also a great age to start saving money together. You can tell them the specific reason for saving money, such as buying a pizza or saving money for a weekend trip to the water park. This way, the kids will learn that there is a monetary value for everything and that one has to be patient while saving money for a greater goal.
This way, you will teach them the importance of saving money by actually doing it together.