How do kids learn about money? From the adults in their lives. So how can you set a good financial example for your children? By talking to your children about your own financial habits and planning, they can gain the knowledge and best practices needed to help them better manage money in the future. In honor of Financial Literacy Month, here are three simple lessons you can reinforce with children of any age.
Maybe your family needs milk but your kids want cookies. Talk to your children about taking care of needs first. Then you can decide together what to do with whatever money is left. This is a good opportunity to talk about saving for their future – especially if your children want to go to college someday. And your children can practice charity by donating to causes that are meaningful to them.
Look for ways to drive home these lessons – for example, you could share an easy-to-understand version of your own budgeting process. This way, your kids can see the "big picture" of your household's finances and help build a foundation of financial responsibility.