Finances are often looked at as an adult topic and is something that isn’t typically taught in school. For this reason, many of us don’t receive those valuable money lessons until we are in a sticky financial situation as an adult. If only we were taught these important money lessons before we are thrust into managing our own finances in adulthood.
Financial literacy is something that should be taught at an early age. The good news is, we don’t have to wait for schools to implement this into their curriculum before our children can begin to learn about money. There are many things we can do as parents to teach our kids about finances early on. Here are 3 Genius Ways to Teach Your Kids About Money.
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Use an Allowance App That Comes Complete With a Personal Debit Card
We have been using the BusyKid chores app, to teach our kids the importance of building a strong work ethic and responsible spending. Here are a few things that I love about the BusyKid app:
- Your kids can get a BusyKid Visa® Prepaid Spend Card that allows them to spend the money they’ve earned anywhere that accepts Visa®
- There is NO subscription fee! Many of the other allowance apps I looked at had a monthly subscription fee – BusyKid does not.
- You can add more than one parent profile to a single account to manage paydays
- You can add more than one child to a single account making it easy to manage everything in one place
- You can payout bonuses for when the kiddos go that extra mile
- Kids can invest in REAL stock!
- Earned money can be separated into a spend, save, and donation bucket
- Automatic payday every Friday
This app is so easy to use, and it has so many great features. It makes money management for kids super easy. My 8-year-old has no problem logging into the app on her device and checking off chores or reviewing her account balance. My 5-year-old requires a little more assistance but she loves having her own money to spend and is super motivated to continue earning more. They both have their goals set on items they’d like to purchase, and they now have a clear visual on how much work they’re going to need to put in before they can buy that special item.
Open an Investment Account for the Kiddos
Investing can seem like a daunting task, especially for adults who probably haven’t even started doing so for themselves. Luckily, there are apps out there such as Acorns that make it easy for you to get your feet wet with the concept of investing your money. Acorns also shares lots of helpful tips and resources to assist you with learning more about investing your money. My husband and I have been using Acorns for ourselves for quite some time, but we recently opened Acorns Early accounts for our girls.
With Acorns Early, you can start building investments for your child the moment they are born. Starting earlier also gives your child’s money more time to grow. The best part is, you don’t have to have a ton of money upfront or an extensive knowledge of investments to get started. You can even automate your contributions. For example, we invest $5 into our girls’ accounts every week. We make it a point to have a meeting with our girls every month to discuss how much their accounts have grown over the past 30 days. We even talk about how much Mommy and Daddy’s investments have grown or even if we are down a few dollars, we explain to them what’s causing the change.
This is a great way for children to learn about the power of a dollar. They also feel empowered because they’re doing something that the grown-ups do.
Lead by Example
Last but certainly not least, one of the smartest ways to teach your kids about money is to lead by example. No matter how many fancy apps and investment accounts you sign up for, your kids will ultimately look to you as their guide. You have to demonstrate responsible spending habits, a strong work ethic, and proper money management. Your children are watching you. As a matter or fact, many of our poor money habits stem from our parents’ own financial habits.
You may not come from a wealthy family and you may even be struggling financially yourself, but it is not too late to change that story for yourself and your children. We can help our kids get started on the right foot so they can avoid many of the mistakes we have made. Start today.