6 Ways to Teach Your Kids About Financial Responsibility

If you’re ready to start thinking about your finances, we’ve got good news for you: April is Financial Literacy Month. Promoted by the Jump$tart Coalition, National Financial Literacy Month is a great time to evaluate your financial situation and make a plan to reach your financial goals.  

6 Ways to Teach Your Kids About Financial Responsibility

1. Talk About Money

There’s only so much you can explain to your little ones about money, especially in a way that they’ll understand. Creating that awareness in them at a young age will help them be a little conscientious in the future. 

2. Give Them a Small Allowance to Manage

Sometimes the best way of teaching your kids to manage money is by giving it to them. But instead of just handing it out, make them work for it!

3. Teach Them the Importance of Saving 

Help your kids understand saving by letting them visualize it. There’s a reason why a savings jar is so effective! When your kids actually see their savings pile up and get bigger, they might be more motivated to save up.

4. When They’re Old Enough, Encourage Them to Get a Job

If your kid is up for the task, an after-school job is a great way for your kids to learn how to work for their money. Whether it’s working as a waiter, cashier, or simply picking up more babysitting jobs, working will teach your kids financial responsibility and a good work ethic.

5. Help Them Create an Easy Budget

You can start them off with something easy, like the 50/30/20 rule. Essentially, they’ll divide their paycheck into three sections: 50% for their needs and essentials, 20% for their savings and 30% for whatever else. 

6. Explain the Importance of Credit

If you really want to set your child up for a successful financial future, explain to them why credit is so important. Explain to them how credit work sand how it impacts their ability to get a loan, credit card and even rent an apartment. 

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