How to teach your kids about money basics

With the kids going back to school soon, you’ve probably been thinking about how to teach them new and better money habits. Starting early on is a great way to make sure your kids have the best chance possible at developing positive money habits and saving skills for later on in life. 

Explain money matters with good messaging

One of the best ways to instil good money habits early on is to talk about money in a constructive way. Being able to have conversations about money, whilst perhaps uncomfortable for some of us, is actually a good way of building a practical mindset not just for your kids but yourself. 

Another way of adopting positive money messaging is by utilising phrases that contextualise money and money habits in a useful way. Communicating to your kids things like “let your money work for you” or “the more you earn, the more you learn” can be the seeds that grow into positive internal stories about money later in life.

Give your kids a regular allowance

An allowance teaches your kids from an early age that money isn’t something that’s just given freely. The benefit of learning this early is that kids will generally find the transition to the workforce much easier.

Some of the ways you can give an allowance can vary. On one hand, you can give an allowance for doing chores (garden work, bins, cleaning the house, etc.). On the other hand, an allowance can be used as a reward for positive behaviour or good work (doing their homework, getting good grades, etc.)

Teach your kids about being practical with money

Good messaging does a lot to give kids a positive narrative about money, but nothing beats the process of learning by doing. Instead of buying them their lunch or everyday items, give them pocket money (or have them save with their allowance) to carefully select what they’d like. Of course, suggest that they aim for what is affordable and healthy.

This can be a good way of teaching your kids the value of their money in a practical way and how they can find products that are useful for their needs instead of appealing to only their wants.

Give your children some money goals

One of the ways you can teach your kids to save is by having them save up their allowance to buy their own stuff. The benefit of this is that they will be less tempted to spend all their money on lollies and chips as soon as they get it. 

Long-term, teaching your kids to save for a goal is a good way of also making sure that when they get their first job, they start saving a portion of their cash too. 

One of the ways you can help your kids save is by opening a kids savings account. Whether you contribute personally or get them to budget how much to put away, Mozo can help you compare the best savings accounts for kids.