Money habits develop early on in life. In order to ensure that your children lead successful financial lives, there are a series of lessons they will need to learn. Here are four essential money lessons for children, and how you can go about teaching them about smart money management.
Set clear financial goals. In order to succeed financially, one’s goals should be specific and achievable. For example, is there a certain toy your child would like to buy or a trip they would like to take? Sit down with them and create a cohesive savings plan, which will allow them to work for and cover the costs of things they want in life. The lessons learned from doing so will be invaluable to them as they grow older.
Contribute to your savings on a regular basis. No matter how modest the amount, starting a savings habit early will pay off. With a SeaComm Moola Moola Account, children through the age of 12 are able to learn about the importance of saving and money management. They will be able to access their accounts through NetTeller™, while also receiving quarterly statements and even earning dividends based on how much they have saved! To learn more, click here.
Forget about keeping up with the Joneses. One of the most common financial issues that almost everyone encounters, is the struggle to keep up with one’s friends. This might include purchasing expensive toys, clothing or phones early on in life, and eventually develop into buying new cars and big houses later in life. In an effort to curb this detrimental habit, encourage your children to only make purchases based on what they truly want, and not simply because their friends have it.
Splurge every now and then. Encourage your children to be diligent with saving and frugal with spending, but also to splurge when necessary. In order to be financially successful, it’s important to achieve a balance. This means that when the time comes to reward oneself after a period of saving and spending wisely, it’s necessary to treat yourself.