Tips to protect kids’ financial well-being
(NC) Financial well-being means having the right tools to meet your financial obligations and feel secure about your future. While it’s important for adults, financial well-being is also relevant for kids and teens.
One of the best ways for kids to learn about money is by managing their own, with parental guidance, such as with a chore-allowance system.
Simple ways parents can teach kids about money include:
Demonstrate the difference between needs and wants
Needs are essential items in day-to-day life such as rent and groceries, while wants are nice-to-have items, such as videogames. By learning to recognize the difference, kids build the skills and self-discipline to identify priorities throughout their life, while still enjoying the nice-to-haves when they can. To help kids understand these differences, parents can include them in activities like the family budget planning process.
Set goals for saving
The earlier kids learn to save money, the more it can become a part of their value system and everyday habits. Kids can earn money through a chore-allowance system, which also teaches hands-on experience and life skills they’ll carry into adulthood. The next step in saving is setting a financial goal, which can be done through digital learning tools, like Mydoh. Its goals feature helps kids visualize what they want to achieve and track their progress. The earlier kids learn the power of saving, the more financial freedom they’ll have later on.
Make it fun and gamify learning about money
Gamification uses elements of game-playing to reward and motivate certain behaviours or teach lessons. Real-life exercises like “no spend days” can bring the fun to money management for kids. It can make learning about finances a more positive experience for them.
Money and finances are often conversations that families shy away from, but learning good money habits early is important for kids to develop long-term financial well-being.
Find more information at Mydoh.ca
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