How to Raise Your Child To Be Financially Successful
As parents, there are many life skills that you will teach your children as they grow. One of those important skills is how to manage money wisely. Learning about money and finance at a young age can help your child be more financially successful in the future. Check out these five teachable money moments:
Before You Go to the Store
Have your child help you create a grocery list. Talk with your child about all of the different ways you can save money while grocery shopping such as using coupons, buying generic instead of a name brand, buying items that are on sale, etc.
While at the Store
While grocery shopping, select certain items that your child can help you pick out and determine which one is the best deal. Find items on sale and compare the sale price to the actual price.
At a Restaurant
Before You Go to the Restaurant
Share with your child your money-saving tips for dining out such as ordering water instead of a soda, skipping dessert and appetizers, and setting parameters for how often you go out to eat.
At the Restaurant
Before ordering, review the prices of items you’re looking at on the menu with your child. Let your child guess how much the check is and review the receipt line by line.
After You Leave the Restaurant
Share with your child how you paid (with cash, using a credit card, etc.) and discuss why you chose that method.
Before You Go to the Bank or Use an ATM
Talk to your child about why you keep your money in a bank account.
At the Bank/ATM
Bring a check to deposit at the bank and explain the process to your child. At an ATM, explain where the money is coming from and what withdrawing money means.
After Leaving the Bank/ATM
Talk with your child about the importance of saving money.
Finding the Best Deal
Before You Go
When there is something your child wants or needs, help pick out one item to purchase and research this item before buying it. Compare the price of the item at different stores, look for a sale or coupon, etc. Share the process that you use to find the best deals.
At the Store
Once your child has decided which item to purchase, go to the store or help purchase the item online. Ask your child about why they chose the item and discuss any pros and cons.
Sharing with Others
Before You Go
With your child, identify a local nonprofit that you would like to donate to. Talk about why it’s important to donate money, time, food, etc. to charities such as the one you chose. If you’re hoping to donate money to a nonprofit, have your child help collect spare change in a jar throughout the year. Once a year, count the money collected, and bring your child along when donating to the organization of your choice.
At the Nonprofit
If possible, arrange a tour of the nonprofit or participate in a volunteer opportunity with your child. This will help your child to better understand the mission of the organization, and therefore, the donation will have a deeper meaning.