7 Simple Steps to Teach Your Children About Money

Here are 7 Simple Steps to Teach Your Children About Money.

Now that kids are at home more, it’s the best time to teach them about real life skills such as money!

Here are 7 steps to teach your children about money.

1. Have them keep a wallet and put their money inside it – they can learn how to keep track of their wallet and keep their money organized in one place
2. Let your children carry their wallet with them and buy something for themselves – you help them determine what they can afford in the store, the cashier is usually pretty nice about helping them find the right amount from their wallets to pay.
3. Take them to the bank once a month and have them save at least 10% of the money they made that month – this is the most important habit to creating financial freedom. You will need to open a savings account at the bank for them to do this. If you don’t do this, you can open a savings account for yourself too and start doing it with your kids =)
4. Create a passive income stream for your kids so that they have money coming in every month – The simplest is a high yield savings account and pay them their interest every month. If you don’t make passive income or know how then Click here to learn more about passive income.
5. Give them a job to do and pay them for doing it – my husband gives Jordan $2 per delivery he does with him on Bitesquad. Kids can make money mowing lawns, washing cars, selling lemonade, etc.
6. Play Cash Flow For Kids, so they learn how to count money, how to become financially free with passive income, how to read an income statement and balance sheet. – Cash Flow For Kids is a board game (click here to learn more about it and see how it’s played). It is a fun way for your kids to learn about passive income and how you need it to become financially free. If you aren’t financially free yet, then playing it with your kids will help you too!
7. Talk to your kids about how to spend their money, about budgeting and charity – I’ve only talked to him briefly about his money, when he receives it once a month in his bond interest check. He once donated all of it to charity, though he wanted the gifts he got from the bank with the donation. I have talked to him about how to save money for paying back his daddy for breaking his monitor. At first he didn’t want to save money to help his daddy, but now he does. This is a great time to discuss your budget with your child too. You can give each other support and good ideas too.