Managing money well is an effective skill that is of utmost importance.
How many children are actively taught how to budget and manage money? How many parents talk about how much they pay for bills with their teenagers? How many parents explain how they budget for different purchases to their kids?
Many schools do not teach students how to budget well and manage their finances.
How do we as people learn how to manage our money when we start to work? Many never learn and some do only after getting into debt and researching how to dig their way out.
I am passionate about budgeting and as a teacher I give mini lessons to my high schoolers on this important practice. I also explain why it is important.
We teach kids about all kinds of dangers in life. We however allow them to grow up and unknowingly fall into the abyss of debt when they could have easily circumvented this. Sadly, many adults do not practice good money management so kids see what they do and repeat it.
Isn’t a debt free lifestyle a wonderful legacy for everyone? By taking the time to research and teach kids about money management we are helping them to get ahead in life.
One easy way to do this is to talk to kids about budgeting their allowances. We can sit with them and help them decide how much they will spend and save. I know some parents may not be able to give their kids money regularly but this can be done from time to time. A mindset to save is important. This can be developed through practice and careful guidance by adults.
Another thing that adults in charge of kids can do, is to help them save up for significant purchases over a period of months. This is essential training, so that when they become adults, they know the value of saving to buy what they want and not jumping to take on debt.
Money management is relevant to children once they are aware of the value of money. We should show them step by step how to use money they get wisely. We ought to help them get into the habit of planning how they will use the money and let them know how important it is to save something.
If we really want to effectively equip children to do well, we have to teach them how to manage money early in life and continue to do so as they grow. There is no magic knowledge that drops into one’s head on how to budget well once they start working. The automatic response for many is to spend all their money and not save anything.
Children are smart and can soak up what we share about managing their money. We also should practice what we preach and demonstrate this in action for them.