NEW HAVEN, Conn. (WTNH) — When it comes to us spending money, our kids do what we show them. So it’s important for us to teach our kids about money.
According to USA Today children as young as 3-years-old can understand basic money concepts. So here are some tips to help you raise a financially savvy kid.
USA Today reports these are tips you should be using on your kids:
- Curb your kids’ demands – Children who are told ‘yes’ all of the time have difficulty handling delayed gratification, so explain they have to wait for something they want.
- Give them cash – Often times kids don’t understand the value of a dollar because parents use plastic. So give them some cash to teach them them basics of budgeting.
- Show how work translates into money – the whole idea of work—that you go and perform a task daily in exchange for money to buy things—is something that is completely lost on a child, so take your kids to your workplace and describe what you do. Then, explain how your employer deposits pay into a bank checking account, and how a debit card can be used to withdraw that money.
- Explain that ads are designed to sell products – The next time your child gets excited about a new toy after seeing an ad for it, explain that those TV commercials and online advertisements are made to make something see much cooler that it often is.
For more tips and ways to save money you can click here.