7 Life Skills Parents Should Prioritize
to Raise Money-Savvy Kids
Raising happy and healthy kids is the top priority of every parent. But you need to think beyond just health and happiness. When it comes to good parenting, everything boils down to teaching practical life skills to your children. With these skills, your kids can handle the challenges life throws at them- in relationships, careers, and everywhere else.
Money skills are perhaps the most crucial because they set a robust financial foundation for an individual.
Someone who isn’t financially savvy has to struggle for success, so it is absolutely essential to focus on developing money skills. It is vital to start early so that they have a good understanding of managing personal finances as they grow older.
The best way to start is by embracing savvy habits in your lifestyle and guiding the kids with money matters. Further, you can teach some skills that will help them for a lifetime.
Here are the ones you should cultivate in young children.
The first thing to educate your child about is self-awareness. While it seems to have nothing to do with finances, the connection runs deep. An individual’s personality traits determine their spending habits. Someone impulsive tends to make spending decisions without second thoughts. Conversely, patience makes people think twice before they spend. It is important for a child to understand themselves and the weaknesses likely to drive them towards poor financial decisions. As a parent, you can guide them about keeping track of their spending. With a spending journal at hand, they will learn to identify their mistakes and avoid them in the future.
Another life skill that can make you financially savvy is self-discipline. Once the child learns the art of staying strong and not giving in to temptations, they will also make better spending choices. Ensure they understand the difference between needs and wants. For example, a pair of football shoes for an upcoming tournament is a need. Conversely, a lavish outing with friends is a want. Let them learn to segregate needs and wants at a very basic level, and you will have a smart teen at the end of the day. Cultivating self-discipline is a daunting challenge, but you can make it possible with subtle guidance and model behavior.
If you want your kids to be confident, there is one more good reason to cultivate this skill in them. Confident people make better financial decisions because they are sure about their capabilities. Parents can nurture this skill by giving financial freedom to their kids. Let them make mistakes and learn their lessons. But even as you give them independence, keep an eye on their spending habits. Fortunately, you can use tools like a debit card for teens to get them on the right track. These let you reward them for chores, spend wisely, and set savings goals. You can even track their spending behavior.
Budgeting is the key money skill that should be on top of your parenting wishlist. Setting and following a budget is something every parent does so it is easy to pass this skill on to the younger members of the family. Involve the kids in family budgeting once they reach an appropriate age as this will give them a head start with financial planning. Ask them to prepare weekly checklists, prioritize items, and maintain a detailed record of expenses. Teaching them the value of sticking to budgets is equally important and, once they learn this skill, it will be easy to get a handle on money.
Bargain hunting is an essential skill that people learn over the years. Online shopping has made it easier to hunt deals and offers, but you can start early by teaching kids the art of buying things by spending the least amount of money. Start with retail shopping. Take them along on your weekly sprees and explain the importance of comparing products and prices. Educate them about postponing non-essential spending and waiting for sale seasons to get the best prices for the same things. Introduce the concept of online shopping and coupons to save as much as they can.
When it comes to savings, DIY skills can take your kids a long way. Every time you call a professional to do a job, they will charge a hefty sum. Encourage kids to develop DIY skills according to their hobbies and interests. They can start with basic gardening, plumbing, and electronic repairs. If they get good at something, pay them for the job as a token of encouragement. Once they learn these skills, your kids will be a lot savvier and they can save a fortune down the line. Apart from the basic DIY skills, you can develop technical and creative skills in the child. For example, they can use creative writing and web design skills as side hustles when they are old enough to work.
Reuse and recycle
Another skill that can take your children closer to financial smartness is to reuse and recycle. Embrace the concept in your lifestyle so that they can emulate your behavior. Start simple, reusing leftovers to reduce grocery bills. Explain how it works in terms of dollars saved every week. If you have a home makeover project in mind, recycle old stuff to give your place a new look and feel. Consider making a difference to fuel budgets by walking instead of driving to work or the market. Set small examples to save money in everyday life, and you can take your kids a step closer to money-savviness.
Parents can give some wise financial lessons to their kids. Don’t wait for the right age because the best time to start is now.
Financial skills need not only be about earning, spending, and saving money. They should be about your approach and mindset towards your lifestyle. Embrace these simple changes to inspire your kids, and be there to guide them when they need your advice. Once they are old enough, explain the concepts of debts, credit, and investment. Keep the education age-relevant, and you will succeed in the mission to raise smart children.
About the Author
Ella is an expert digital marketer with a flair for creative writing. She offers helpful insights in niches such as lifestyle, family, finances, and relationships. She writes for some industry-leading blogs that are acclaimed in their respective niches.