We all wish our parents had taught us better about money, and we certainly would love it if our children grew far away from debt and far close to investing and trading. So here are 9 ways to teach your kids about money…

As a matter of fact, you can teach your kids about money from a very young age and gradually, without forcing them to learn. You’ll have ten or more years to build the habits of saving and investing in your baby – it’s never too late or too early to start!

How to beginteach your kids about money

First of all, to teach your kids about money, you have to learn how to speak their language. By that, I don’t mean “make it more simple,” but instead “make it more interesting.” If you were a kid, why would money be something of your interest?

As a mom, you already know that they shouldn’t be underestimated.

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You can have this conversation with them when they first ask you for something expensive, or just whenever they seem interested in what you’re doing when you’re trading, budgeting, or just checking your purchase receipts.

This is a skill they must develop, and it’s better sooner than later. Some kids will even have fun while learning about money because it is challenging and useful.

In this article, I’ll tell you some ways I taught my kid about money, and maybe you can use some of them as well.

1. Tell them the importance of money

They will only learn if they know how important it is. I admit some younger kids won’t understand very well, so you can skip this step – but at some moment in their lives, they’ll need to know why budgeting, why trading, why studying.

Tell them that there are many people facing debt because of their rash decisions when they were younger. That many people who start saving early in life become richer easier in the future. What if they learn about money, they will be able to buy anything they want.

If they ask you if they’ll be able to buy the moon, say “yes – if you save and if the moon enters on the market, you’ll be able to buy it.”

2. Budget money with themBudget with them

I found that budgeting with my son is one of his favorite things.

We spend some quality time together while he learns about the prices of gas, food, clothes, and bills like energy, water, and internet. When you budget with your kids, you make them aware of the costs of living.

Believe me, many kids think that the only thing that costs money is their toys – and only because when they ask us, we sometimes complain about the prices.

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3. Exercise their critical thinking on money

When I say critical thinking, I say let them know about the marketing strategies that make them want things.

Unfortunately, marketing also affects children. You know almost every kid has at least once nagged their parents to buy something they saw on TV or online.

This has many adverse effects on children’s health, especially when the product is food. It also tends to make them want junk toys that will only be used for a week.

You can teach them how to be critical by showing them documentaries about junk food, consumerism, and marketing strategies. You can call their attention to the commercials you see together on the TV and look together for the approach being used to sell. An excellent hobby, I might say.

4. Set an financial example

The best strategy of this list is setting an example.

When you do things correctly, your children will see how you treat your money and will learn from your actions. Believe me, they pay attention to everything, and you’ll save a lot more.

5. Teach children to save money to buy

Saving is ESSENTIAL – for you and your kid. Setting an example and saving your own money can be a strategy, as well as giving them a savings jar as an incentive.

This article features a fantastic chart of ways to teach children how to save, from kindergarten to 12th grade!

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6. Make kids earn the things they want

We value the things we have earned in our lives. With money is the same – when we start working, we are more conscious of what we spend. A fantastic way to teach your kids about money is by making them earn the things they genuinely want.

Are they asking you for the newest PlayStation? Tell them you can give them half of the money to buy it if they earn and save the other half by helping with some chores around the house or doing simple services around the neighborhood in exchange for money.

This way, they will cherish their money and their PlayStation a lot more.

7. Give kids money bonusesGive them bonuses

Are they doing very well at school? Are they helping you a lot on the house chores?

You can offer a bonus to them in the form of money so that they can add up to their savings and buy the things they want sooner.

They will know that they also have earned that money, and it can help them do better each time.

8. Learn with them about trading

If your kid is bigger, why don’t you try and learn about trading with them?

You might have bought a course, or you’re reading articles about it. Try and watch the classes with the kids. Share what you have learned. Watch YouTube videos with them.

9. Talk to them about compound interests

Imagine how much you would have now if you invested £50 each month since you were 13?

Compound interests are miracle workers, and every child should know that as early as possible.

You can give them the numbers by just adding the possible values in here.

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According to this calculator, if they invest ONLY £50 from 13 to 30, by the end of this period at an interest rate of 1%, they would end up with £7,741.79

about compound interests

This is hypothetical since they would be able to invest more the older they get.

9 Ways To Teach Your Kids About Money

These are some of the ways you can teach your kids about money. Which ones are you going to start putting in practice today?

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