10 ways we can tell children about money

Talking to children about money is a central element of their financial education. The information you choose to share with your children always has power. From explaining the basics of money from a young age to discussing more complex financial concepts such as budgeting and the bank loan system. How you talk about finances will influence your children's relationship with money for the rest of their lives. Here are 10 healthy habits that little ones can learn about money. 

Encourage saving: Teach your child to save some of their allowance or any money they receive as a gift. This habit can help them build a good foundation for money management.

Establishing the budget: Teach your child the importance of budgeting and how to set aside money to cover expenses. This can help them learn to prioritize their spending and avoid overspending.

Deferral of reward: Teach your child to wait before making a purchase instead of buying on impulse. This can help them understand the value of money and learn to value their purchases.

Establishing objectives: Goal setting brings motivation and perseverance. Help your child set financial goals and work towards them. This can help them develop a sense of purpose and responsibility for their money.

Expense Tracking: Encourage your child to track their spending using a notebook or app. This can help them identify areas where they can cut back and save money.

Investments: Introduce your child to the concept of investing and how it can help their money grow over time. This can help them understand the importance of making their money work for them.

Donation: Teach your child the value of giving back to the community by encouraging them to donate some of their money to a charity or cause they believe in.

Debt understanding: Teach your child about the risks associated with borrowing money and how to avoid going into debt. This can help them make informed decisions about borrowing and credit management in the future.

To be responsible: Encourage your child to take responsibility for their own financial decisions and learn from their mistakes. This can help them develop a sense of responsibility and independence.

Seeking guidance: Teach your child to seek guidance from trusted sources, such as parents or financial advisors, when making financial decisions. This can help them avoid making costly mistakes and develop good financial habits for life.

Learning good financial habits is crucial for anyone, regardless of age or income level. It is essential because it helps people develop a sense of responsibility and control over their finances. In general, learning and practicing good financial habits is vital to achieving financial stability, security and success in life.

*Article written by Veronica Dunga, KEN Academy trainer.