Teach your kids about money

March 3, 2022 NATALLIA SMITH

You want to teach your kids how to save – but as a busy parent, where can you start?

Here are today’s tips for helping kids learn to earn, save and spend:

1. Set goals and steps

Break down their savings goals into achievable steps. You may want to use a savings app or a chart to help them visualise their progress. Celebrate each milestone as they reach it to reinforce the good savings behaviour.

2. Use household tasks to encourage earning

Household chores are a great way for your child to learn the value of money. Sit down together and discuss what needs to be done and what each chore is worth to you and your child. Remember to pay your child as closely as possible to the completion of the chore as this is the way to reinforce the value of their own work.

3. Allow impulse purchases and treats – within reason

Don’t be too tough on your child if they have a moment of weakness with their savings habit. Remember, it took you a while to learn restraint too.

4. Discuss different types of spending

Help your child appreciate the difference between planned and impulsive spending. Talk to them about how quick spending decisions often feel good in the moment but don’t last. This is the beginning of their discovery of financial discipline and delayed gratification. It is not an easy skill to learn for any of us, but is one that you will instil in your child for their lifetime.

Hopefully you found these tips (and last week's) helpful. They’re brought to you by the new FLX® prepaid Mastercard® and savings app for kids.

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For a limited time, there’s a $5 bonus* waiting for you on activation – why not use it to reward your child for helping at home? They can start to learn to save for something they really want!

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