Simple Ways to Teach Financial Principles to Your Children

Simple ways to teach financial principles to your children

Just as you teach your children about important life lessons, social skills and education, it’s important to add in financial education. In fact, students who have a solid foundation of financial education are more likely to complete college. And, students who understand money basics are in a better position to manage debt, develop efficient budgets and save for retirement.  

Here are some simple ways to introduce financial principles to your children today: 

Delay it 

Most children expect instant gratification like wanting a specific toy now. Help them practice being patient and saving up to buy the toy. Perhaps you can get them a piggy bank, and gift them spare coins or assign tasks to help them earn money to purchase their toy. Then, you can count their savings together and make a special trip tot he store to purchase their hard-earned toy. 

Play it 

Incorporate finances while playing games or make-believe with your children. If they are play-cooking, offer to “purchase” a make-believe item for a certain price. Another idea is introduce a make-believe game where your child is a business owner and teach them about making sales and paying their bills. 

Another easy way to have fun while introducing money principles to your children is to download the Southland Jr. app on iTunes or Google Play. Visit our Southland Jr. Savers page for more information. 

Say it 

An easy way to teach your children financial principles is to use you own experience. Let your children in on some of the things you're purchasing as a family. Of course, you can can keep how much you share within reason, but you can let your children know how much your takeout costs or how much the groceries cost for the week. Try explaining to them how these purchases fit in your family budget or average spending overall. 

Display it 

If you want your children to grow up to be financially healthy adults, make sure you’re a financially healthy adult! Your children will look up to you and learn from your money habits. If you would like to improve your financial fitness, take one — or all — of Southland’s free financial courses in our Achieve: Financial Education center. As an added bonus, if you register and take at least one financial course before June 30, you will automatically be entered to win a $100 gift card! 

The Southland Jr. Savers account helps you teach valuable savings and budgeting skills while saving for your child’s future. For a limited time, you can open a Southland Jr. Savers account with a minimum deposit of $5, or make a deposit of $5 or more in an existing Southland Jr. Savers account, and you’ll be automatically entered to WIN one of 20 $100 prizes or a grand prize of $1,000!

Source: Today.com