How to Teach Your Kids About Earning, Saving, and Investing

Teaching your kids about financial literacy has no limits. If anything, kids should learn all aspects of money—earning, investing, and saving, to instil financial discipline in them. 

Sure, adapting to the life of minimalism won't be easy, but with time, your kids will begin to understand the benefits of saving. 

That said, this post will walk you through everything you need to know about helping your kids better understand financial literacy.  

If you want your kids to appreciate the value of earning, saving and investing, you have to program their minds to understand that needs always outweigh wants. 

Let them know that primary healthcare, shelter, food, education, and essential clothing are needed. In addition, let your kids understand that wants are extra expenses they don't necessarily need, such as designer shoes, quality smartphones, bicycles, etc. 

Go further by introducing a fun activity, such as identifying items to differentiate between wants and needs.  

By building this foundation, you'll explain to them how they can save and stay financially intelligent. They'll understand that the ultimate solution to investing is first saving and not spending. 

A  2019 survey indicated that most parents pay their kids allowances of up to $30 after completing a five-hour weekly chore. While a few didn't welcome this idea, kids must learn how to earn, save, and invest the little they've got. 

Find a way of rewarding your kids for the little effort they put in. For example, reward them after completing house chores and help them know ways they could save their earnings, then invest it later. Walking them through this journey is critical as most kids would end up spending the little they just earned.  

Saving without an end goal is pointless; have some savings goal drafted and ensure you're following it. So whatever the case, impart some ideas to your kids to have a clear understanding of why they're saving. 

Maybe you'd want your kids to save for their emergency medical bills or save for an investment idea they've got—whatever the case, just make sure they have an end goal to facilitate their desire to save and meet their end goal. 

Because saving is an idea that even the old don't get right, help your kids with a better strategy to help them through. Break down their savings plan and know what amount they need to save—either on a daily, weekly or monthly plan. 

If you want your kid to save comfortably,  provide them with a saving spot where they can channel the little earnings they get. A piggy bank is a good starting point. Order one from Amazon or a local shop and let them have their savings channelled there whenever they earn anything. 

If your kids are grown-ups and have attained the age of having their bank accounts, help them through the process to have a savings account where they can save their earnings. Encourage the savings habit and appreciate the little efforts they make. 

All excellent savers know how to track every dollar spent.  

That said, banks have now made it easier to track your money. However,   go the old fashioned route to track your kid's expenditure and help them rectify any bad spending habits your kids might have. 

Encourage your kids to record everything they spend daily. This can help sort out any savings challenges, especially when your kids fail to meet their weekly or monthly savings target.

Sit your kids so that you can review their savings plan and improve whenever you can. This will help them learn from their savings mistakes and improve with time.  

Saving is not easy, especially if the goal is overwhelming. But that doesn't mean you can't find better ways to motivate your kids to save more and get better at it. 

For example, if your child wanted to save and purchase learning equipment, you could encourage them by giving them incentives to meet their goals.  

The essential secret of saving is to never live beyond your means. And so if your kids want something, you can make yourself their creditor like Viva Payday Loans which offer no credit check loans same day. This way, they'll learn the importance of saving. 

For example, if your kid wants a toy car worth $100, you can offer them the loan and then let them pay you back in bits each time they receive their weekly or monthly allowance. This will teach them to have financial discipline and not rush spending. 

Lastly, you have to discuss all aspects of money with your kids like debit, credit, etc. 

Even if you have to talk about it daily, you should make them understand the significance of earning, saving and investing in a project that can bring them quick returns over a long period. 

You've seen the importance of giving your kids an excellent financial foundation so that they transform their lives from an early stage. However, you need to lead by example to learn from you.