Teaching Kids Money Management

Anyone who runs a business knows how important managing finances are, and how much benefit businesses get from having a professional like this Gloucester accountants www.randall-payne.co.uk/services/accountancy/gloucester-accountants/ help them with this.

Managing your finances is not just a skill that business owners need though – every adult who lives independently needs to know how to manage their household budget, and money management is certainly an essential life skill.

Image Credit

It is never too soon to start teaching this, and for parents, it is definitely a useful and valuable skill to teach to children to help them thrive when they grow up and fly the nest. Here are some of the things that parents can teach to their kids to help them manage their money when they grow up…

Savings – Saving money is something that can help us through the hard times in life and also helps us to get that big purchase. When you are an adult, this might be a home extension or a new boiler, but to start kids off on their savings journey and teach them the importance of saving for what they want, such as a new toy, you can now instil valuable lessons.

Ask them to find out the cost of the item, and then work out how much they need to save each week to get to their goal. This will teach them that they cannot always have what they want straight away and that saving for something can be rewarding.

Image Credit

Budgeting – Involving children in budgeting plans and how much things cost is a great way to get them thinking about money management. Setting them up with a bank account and familiarising them with bank statements and what various terms mean can help to grow their confidence when it comes to managing money.

Get them to go through a bank statement and work out what needs to be paid vs how much there is available and how they might do this themselves.

Working for Money – We all have to work to earn money, so introducing this early is important. Have a set payment for chores that kids can do around the home, which helps you and also can earn them some money. This will give them the sense of achieving something for the effort that they have put in.