Are you teaching your kids bad money habits?

For a chance to WIN one of two $50 gift vouchers from online kids clothing stores All Things Anhorahble and Zeke Unique, simply tell us below the fun ways you’ve taught your kids about money.

Did you know that financial habits are already formed by the age of seven? Scary thought, isn’t it? Good money management is one of life’s most valuable skills but just how early should we start teaching kids about money?

Kirsty Lamont from Mozo recently appeared on Channel 7’s The Morning Show to talk about this exact issue. And the answer of course is: it’s never too early to start.

Here are some of the top tips that were discussed on the show.

Top 5 Money Lessons

  1. Money isn’t free. It’s earned. Kids need to learn that money doesn’t just magically appear from mum and dad’s wallets whenever they want something.

  2. Small savings add up to big rewards.

  3. Wants are not the same as needs. Parents can start teaching children from a young age that we can’t always have what we want.

  4. Budgeting helps money go further. It’s important to teach kids that budgeting isn’t about the can’t haves, it’s about planning for the things you can have.

  5. It’s better to give than receive. Teach kids that giving can be as good (if not more rewarding) than getting.

Tips for teaching kids good money habits

  • Be a good role model with spending and saving. Children pay close attention to everything we do and the best way to avoid teaching kids bad money habits is to be a good money manager yourself.

  • Don’t just talk the talk, you’ve also got to walk the walk. Your children need to see you show restraint with money and see you budgeting, comparison shopping and putting money into savings.

  • Use play and online games to teach basic money concepts.

  • Get your child to help you when shopping, paying and checking change.

  • Reward first savings efforts. For instance, you could match savings to encourage your kids to save for a particular goal.

  • Help your kids break their pocket money into spending and savings. We all know that when you don’t allow yourself some money freedom it can lead to budget blow outs so it’s important to distinguish savings from other money.

  • Help your child set up a savings account and get them to make their own deposits so that they can feel responsible for their savings. There are a number of kids savings accounts that don’t charge fees and offer good interest, you can compare them all on Mozo here.

What are some of the fun ways you’ve taught your kids about money? Tell us below and you could win one of two $50 gift vouchers from All Things Anhorahble and Zeke Unique.  We’ve got two vouchers to give away for the best answers.

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Are you teaching your kids bad money habits? was last modified: June 29, 2015 by Mozo

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  1. I taught my kids with their school banking each week, they received $5 pocket money & had to bank $1. They were always asked if they had 10c or 20c to add so they could see it add up. When we went on holidays they were allowed to spend whatever they liked. If they wanted 4 icecreams per day thats fine because they were paying. Now that made a difference, they were very frugal and counted the costs each day of what they had left & if it would last the whole holiday.

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  2. I was horrified when my partners 5 year old when told we didn’t have any money said “Just go to the machine and get some”. She now is slowly learning it doesn’t work that way and that we both work hard to get the money we do have. Her school banking every week is a great way to teach her the value of money, if she does what we need her to do, teeth, dirty clothes in laundry basket, keep room tidy, for the whole week