The debate over the age at which kids should learn about money, financials, bills, savings, skills, and everything in between may not be resolved or ended, for numerous aspects contribute to a decision. Nevertheless, some things are clear, such as the fact that growing up, your kid will introduce themselves to these concepts on their own. They don’t need help learning how high of a price is “too high”, how cards work, how they can make an easy buck, etc. Ask your child their stance on these matters, and once you encourage them to put their minds to something worthwhile, you may discover that they have acknowledged a concept or two.
Children are incredibly good at memorizing things, and so when the prospect of putting their hands on their desired toy or sweet appears, they’ll seek ways to make it happen. This may include making savings. The internet abounds in resources that teach your kid things worthwhile – it’s only important to sort the unsuitable from adequate ones and know what they access. For instance, modern money-related concepts like blockchain, digital currency, and a fugitive BTC or BNB price prediction in the corner of their smartphone’s display could catch their attention in a way that will linger in their minds. For the likelihood of coming across sources that will become your kid’s teachers in financials and money is high, you’ll want to take the matter into your own hands and ensure they’re learning all the right things.
Kids are introduced to adult stuff earlier since every generation’s development tends to expedite and jump over some stages you may have encountered in your developmental years. Let’s see how you should approach this undertaking and what experts’ views are.
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The ongoing debate on pocket money
Giving children money they can spend on life’s pleasures or saving for a higher purpose may be a never-ending topic given the multiple and varying perspectives. It’s one of the definitive actions to establish how the kid perceives money as an adult, making the milestone even more pressing. Fortunately, experts in parenting share their views so that you can choose what’s best, depending on your goals and your children’s behavior.
Parenting specialist Kirsty Ketley rose to popularity after divulging the poorest parenting myths and tips everyone should steer clear of. Despite spurring some controversies with her remarks and statements, which, frankly speaking, were expected, the expert’s POV makes a lot of sense. According to her, parents should start instilling healthy financial habits into their kids from a young age because this is how they’ll grow up perceiving money. With a kid of 10 years old and one of 6, the expert reveals that she offers them money without asking them for anything in return.
Recompensing kids for sharing duties and helping with household chores is commonplace. If this is the only feasible method that you deem helpful, you can go ahead – as long as they receive money, everything is fine. Don’t ask the world from them, though, since money must not be something they feel like it’s impossible to touch. And pay attention to the amounts handed. If they want something that’s not in the vital necessity category, like a toy or playing equipment, encourage them to buy it with their own money. They’ll learn that nothing comes for free and everything has a price.
Teaching your kid to sort good from bad is essential at any age
Buying an eye-appealing thing only to unpack it and find that you didn’t need it is probably an old hat. Now, imagine how much children need to learn that a dollar can’t buy two chocolates and that they’ll have to carefully assess all the cons and pros to find whether milk or strawberry filling is what they crave more. Is your kid dreaming of a Lego? If so, they should know that cutting some expenses can actually help them acquire the singled-out construction toy.
Teach them that they can go for the thing they derive the most joy from, instilling that they will have long forgotten about the unbought chocolates when unpacking their Legos. This calls for another lesson—that of patience.
Mastering the art of patience
Patience is one of the most valuable attributes, yet many lack it. According to a study from Science Direct, 84% of purchasers buy things on a whim after seeing them online and deciding they want them, despite not having had this thought to cross their minds before. Fast shopping and influencer marketing are other two things that may steer kids clear of healthy buying and investing behavior.
This is where you can step in and instill that patience is sometimes a necessity. This is what will help them get the bigger fish instead of little pickerels. If their weekly allowance is $2 and they want a $16-worth teddy, let them know that two months of savings will get them the much-loved fluffed bear. It’s likely better to begin humbly and not start with something that takes forever to buy, albeit a bag is unlikely to work.
Investing vs. saving
Instilling that making savings is the way to obtain the best of the best is one thing. Teaching them to invest is another kettlefish, though. Help them learn what investments are to understand that they can give money even more potential. Share the basics of investing while they’re young so they can build on that as they grow.
Parent advisory Eric Landold got right into businesses and expressed his thoughts on the age at which a kid should learn about investments. According to the expert, financial literacy must be seen as a basic skill and nothing more esteemed than reading, writing, crayoning, and so on. Money-related decision-making directly impacts the quality of their lives, and it would be best if they realized it while they were young. According to the expert, six is an excellent age for introducing kids to money concepts. Similarly, he adds that helping kids invest can start from 12 to 15 years. Learning to manage small budgets can help them immensely down the road, and by 18, they’ll already be ready to understand things about banks, investment firms, and the overall financial system.
Do you feel ready and confident to tackle one of the world’s most challenging topics with your child?
