The best way to prepare children for adult life is to make them understand one of the pillars of healthy living, which is financial safety.
Teaching kids how to earn, spend, save, and give money is a great way of setting the foundation for what every parent wants their child to become, a responsible individual.
Today, we will take a closer look at the lessons you can teach your children at various ages for them to gain a healthy understanding of personal finances.
A). Toddler Years – 3 to 6
During this period, it is difficult to demand too much from your child when it comes to grasping the concept of economy.
Nevertheless, it is the time in a kid’s life when they understand that all the good things they value, such as toys and sweets come in exchange for money.
It also is the time when they start basic counting, and they can make their first savings from the money they receive from relatives or friends as gifts.
i). Earning
You can’t expect your toddler to get a job at this age, but you can still teach her about the practice of doing service in exchange for money.
You can tell your child that you will repay her with a few coins if she gathers her toys or makes her bed. Children love rewards, especially when they know that they lead to better rewards.
ii). Spending
Speaking of better rewards, teach your child that she can use the coins that she earned to buy toys and sweets. This way, you create a lifetime habit and understanding that she must first give before receiving.
The lesson will prove even more crucial for her finances when she will have a Spendsafe Debit Card.
iii). Saving
Kids also like coins to play with them, and the more they have the better they feel. Get your child a piggy bank, and teach her that not spending her hard-earned coins right away will lead to bigger advantages in the long run. Instead of buying a lollipop right away, she can buy one hundred six months from now.
iv). Giving
Being charitable is a trait that you have to learn from a tender age. It is never too early to teach your child that giving is more rewarding than spending or saving all of her money for herself.
Show her that giving even a small fraction of her savings will make both her and the receiver happier. Sharing is caring, after all.
B). Childhood Years – 6 to 11
This period is all about cementing the good habits that your child has developed in her toddler years and also about preventing the development of uglier ones that could ruin her adult financial life.
i). Products vs. Skills
Teach your kid the difference between spending money on a product vs. spending money on a service.
Tell her that her new dress is good that she can pay for, but the artisan who made it gained money for her aptitude and talent at dressmaking. This way, she will discover that having skills pays better in the long run.
ii). Needs vs. Wants
This age is also ideal for teaching your kids how to prioritize their expenses. Tell them about how paying utilities, taxes, and ensuring shelter and food come before buying sweets, toys, or paying for entertainment services.
C). Puberty Years – 11 to 13
From this age on, you should have a more serious approach to teaching your kids about money and how to handle their finances.
i). Credit and Debt
Teach your child about the risks of not being financially healthy. Show her the difficulties that come from having debt and the importance of budgeting to avoid acquiring it.
Show her your Spendsafe Debit Card and all the benefits that come with it. However, tell her about the problems that may arise from spending too much on unnecessary goods and services.
If you have experience with debt, do not be afraid to share it with your child for her to get a better understanding of it.
Now, you can also teach your kids about interest. You can even go back to their first piggy bank and tell them that if they save a certain amount of money for a particular period, you will reward them with 10 percent of it.
D). Adolescence Years – 13 to 18
This period is the most exciting one in your child’s ever-developing understanding of personal finances. You should still keep a strong grip on their money management while letting them a bit loose from time to time, and see how they act.
Making minor mistakes with their budgeting or saving habits at this age is safer and easier to correct than if it happens 10 or 20 years later.
Once she turns 18, get your child her first Spendsafe Debit Card, and let her practice all the lessons you taught her. Watch with pride as she develops into a fully functional adult with an in-depth understanding of personal finances.

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