Teach children the value of money
Good habits start at a young age
The money talk. Often parents and grandparents feel uncomfortable discussing the topic. Unfortunately, children don’t often learn proper money management in school so it can be difficult to understand and appreciate money without proper guidance. Money education however, can be fun, simple and effective! Here are some ideas to guide your children with money:
Split it. Instead of purchasing a gift outright for a child (except for holidays), offer to split the purchase. Allow them to rationalize why they want the item and whether it’s a good purchase. Splitting the purchase provides an opportunity to talk about the value of money and enjoy the item or experience together.
Chores. Chores teach responsibility. Whether you want to pay for chores is a personal preference, but offering incentives for high quality work can be a great morale booster and demonstrate the rewards of hard work.
Match investing. A matching program can be an excellent way for children to experience investing. For example, if your son or daughter earns $1,500 over the summer, consider matching the amount in an account for them*. Use the opportunity to discuss what money means to you and the power of saving.
Develop your own fun ways to teach your kids about money and pass on impactful values. These simple activities can set the foundation to have deeper conversations about family wealth. Remember, this can be fun!
*A contribution to an investment account may count as a gift, so ensure you have not exhausted your annual exclusion for gift tax purposes. See a financial professional for guidance.
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