Unfortunately most parents don't teach their kids about money. As a result, their kids grow up financially illiterate. You can do something about that.
If your family is having money problems, perhaps it is difficult to talk about it but don't try to hide it. Kids are very intelligent and they are probably aware of your problem anyway. When you do talk to them about the situation, make sure you are positive. Explain that money is a good thing when it is used respectfully; how it can help you lead a better life and help others who are in need. So when is the right time to begin teaching your kids about money? It is never too early to learn about the value of money and how to budget and save.
It's Never Too Late or Too Early!
1. Help your children set goals.
It is great to communicate with children, most children like talking about what they want when they grow up. Listen to them and help them set some goals early. You can explain that investing and saving is a huge part of getting what they want.
2. Help them put those goals into action.
You can create a rough financial plan with them. Introducing a financial planner could be fun and educational. This will help your kids see that saving and investing is serious.
3. Look into opening savings accounts.
Open savings accounts in your kids' names and make sure you go over the statements with them. A savings account is a great teaching too.
4. Give your children choices.
A big birthday party might be quiet expensive. Give your children choices. They might prefer just a cake, ice cream and some games with their friends and put the rest of the budget in their savings account.
5. Encourage giving from an early age.
There are many ways of giving: time, money, jobs,etc. For young children, sharing begins with letting others play with their toys and learning to take turns. The best way children lear is by modelling. As they get older, children learn what they live. If they see you giving your time, energy, money to less fortunate, this is exactly what they will learn.
Encourage children to put some of their money aside each week: 10p in every £1 is the amount often suggested, but you can discuss this with your children.
Discuss with your children how they want to spend their ‘giving’ money. Give them choices. They might want to use it for sponsoring friends, for a charity, for appeals on the TV, for special gifts for less fortunate people.
There is nothing training cannot do. Nothing is above its reach. It can turn bad morals to good; it can destroy bad principles and recreate good ones; it can lift men to angelship.