Five Easy Ways To Teach Good Money Habits To Your Children

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One of the best things that you can teach your children that will be useful to them, later on, is how to properly handle their own money. Depending on the age of your children, there are lots of easy ways to help them learn about money without stressing them out. Here are some of the best ways to teach children about money and savings and to start developing their money habits.

1. For older children who are about to move out or leave for university, an honest conversation about different kinds of debt is a good idea. Many students get into a mess by applying for credit cards they can’t really afford. Have a frank discussion about debt and make sure they understand what they can and cannot afford to pay back. Teach them about credit cards, and loans, so they can make informed decisions for themselves. Even if their student accommodation is all paid for, they will need money for groceries and their social life. 
2. Model good money habits. Children will copy what they see their parents do. They can adopt the habits that they see you showing them. If you want them to be good with their money, make sure you are trying your best to be good with money yourself. Set a budget, use coupons and discounts to pay for everyday purchases and try to shop for used items when you can. 
3. Save for the future. Children can find saving hard to do as they’re tempted by the new trend, whether it’s a toy or the latest pair of trainers. To help them to begin to get used to saving their money, open a savings account in their name, and make sure they pay into it on a regular basis. Encourage them to save some of their allowance if they get one, earnings from a job, or part of any money they are given as birthday or Christmas gifts. Show them their savings statements so they can see their money growing and be motivated to save more.
4. Involve them in the shopping. Get your children involved in shopping for household groceries. At the grocery store, ask them to be in charge of the shopping list and encourage them to choose the products that they think are the best value. This gets them to think about brands, prices and multi-buy deals to work out what is the best value. Teach them how to decide, so they can make these choices for themselves when they move out. 
5. Get them to wait to buy something they really want. Learning to wait when you want something is an important lesson. Don’t be tempted to give them any extra money to get what they want. If they want something, such as a new video game, tell them to save up for it themselves and don’t help them with any cash beyond the pocket money that you usually give them. This teaches them to wait and to save for things that they want.