Do any of us ever really learn to deal with money perfectly? As adults, we must manage or “wants” versus our “needs” and we still find ourselves struggling to keep things in check and not overspend. The earlier we learn these lessons the better. That’s why it’s a good idea to make sure our kids are on an even keel as they start to navigate the world of personal finance as they grow older. Teaching kids about money today can help avoid debt later.
Making It a Game
Writing on VOSA.com, Shannon Ryan suggests a game that could help teach these values to kids.
One of the best ways for kids to understand how to differentiate between want and need is to take them shopping. As you put things in your cart, ask your kids if the item is a want or a need. Let them explain their decision, then give them your answer. This is a great time to talk to your kids about how you decide to use your money. How you budget for things like food, clothes and fun. Ask their opinion on the things you buy. For example, you need cereal, which one would you buy and why?
Ryan makes a good point in that we shouldn’t make our kids feel that it’s wrong to want something. “Wanting” is a natural emotion. It’s fitting those wants into our priorities that takes knowledge and determination.
Click the link below for more ways to help your children understand the importance of money management.