Financial literacy for kids is so important and with the 5 tips shared in this article, they can develop the instinct for better money management as they learn and grow.
Getting your kids to be organized is a task that requires patience and willpower as a parent. Kids seem to thrive in clutter.
You will always find dirty clothing on the floor, toys scattered all over, legos, papers, books – you name it.
Instead of yelling your head off all the time, you can try to turn these moments into teachable ones.
Take it a notch higher and let them learn about money from basic organizational skills.
Why is Financial Education Important for Your Kids?
Early financial education empowers your kids to make better decisions about money, savings, and investments as they grow.
Financial education also helps them learn the value of money. It’s easy to think mummy and daddy just pick money off trees if you’re never educated about money.
Financial education is an invaluable asset to kids and it will be one of the best gifts you will ever give them.
The 5 tips below are subtle and efficient ways to incorporate money lessons in your kids via organization skills.
1. Improves Their Work Ethics
By getting the kids to be well organized at home, there is a chance that they will have a better work ethic than those who are not organized.
Allow them to do chores at home by assigning duties and responsibilities.
Soon enough, this ethic will spill into their money management habits.
2. Help The Less Fortunate
One virtue of being a good person is the capacity to help those in need.
This is something you should start instilling in your kids from an early age.
Have them organize their toys in different categories. They should have the toys they use often in one category, others rarely used in the other category and the ones they do not use in the last category.
They can then donate the toys they do not use to other kids who will appreciate them.
By doing this, the kids will learn that when they start earning money, they should use part of their income towards charity.
3. They Learn How to Live a Minimalistic Life
By being minimalistic, you are able to concentrate on only the things that are necessary and leave out what is not necessary.
This prevents impulsive shopping or buying stuff that they don’t need when they are older.
You can instill this discipline and virtue into your kids by letting them take into account what they have versus what they need.
They will realize that they have a lot of stuff that lies idle.
They can get rid of this stuff and keep only what they require for their pleasure and convenience.
4. Develop Their Sense of Value in Duties and Things
When you assign duties to the kids, you are letting them know that they should place a certain value on everything they do.
You may or may not give them allowances based on the chores they do, but the seed will already be growing inside them.
Later on in life, understanding why they are doing something or seeing the value in whatever they are spending their money on will help them become better money managers.
5. They Understand Responsibility
Many kids may feel entitled because when they need something, all they do is ask.
It’s our responsibility to provide for them but we can also make this a teachable moment for them.
When you assign chores to them, give them clear instructions on what you expect them to do and how they should do it.
If possible, let them know the importance of doing the chore.
In the future, they will always feel responsible for the way they spend their money.
6. Get Them Reading
It’s never too early to start getting your kids interested in financial literacy via reading. You can read to them or let them take on little activities to learn about money management.
Some great financial literacy reading for kids include:-
- Money Ninja: A Children’s Book About Saving, Investing, and Donating
- Teach Your Child About Money Through Play: 110+ Games/Activities, Tips, and Resources to Teach Kids Financial Literacy at an Early Age
- A is for Accounting: ABCs of Financial Literacy for Kids
- A Boy, a Budget, and a Dream
- Finance 101 for Kids: Money Lessons Children Cannot Afford to Miss
Through these subtle implementations, your kids will start to subconsciously learn how to manage their time and money effectively.
These kinds of lessons are deeply ingrained when started early and stay in place long after they leave home.
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