It’s never too early for parents to help their children develop skills in numeracy and money management.
Whether it’s being a good financial role model, teaching your kids money values or budgeting skills, or helping your kids understand the different things they can do with allowance or gift money, parents can instill financial literacy in their kids, says Robin Taub. She is a chartered accountant and author of “A Parent’s Guide to Raising Money-Smart Kids”. Taub shared these four money tips:
Be a good financial role model for your kids. They’re watching, listening and learning from you. They’re aware of both your good and your bad habits when it comes to money, says Taub. Lead by example by living within your means, appreciating the value of saving, setting financial goals and delaying gratification.
Start teaching your kids about money early - around the age of five is a good place to start, Taub says. You want to lay the foundation so that your kids have the opportunity to learn from a young age. It gives them a tremendous advantage in life.
Keep the information age-appropriate and teach core concepts of money management, says Taub. When you earn money, you have choices to either save, spend, share/donate, or invest. When your kids are young, teach these choices at a basic level, and increase the level of sophistication as they get older.
Take advantage of teachable moments. You can build a money lesson into your day-to-day lives – like when you’re using your credit card at the store or when you’re planning a birthday party for your child. These are two scenarios when you can create an opportunity to talk to your kids about budgeting.