How to Instill Good Money Habits in Your Children

Being a parent is incredibly rewarding, but can be a little tough during an economic crisis in your life. It is very difficult to make your kids understand financial hardship when they beg you to buy them the latest video game system.

The good news is that you can teach them to be financially responsible and understand the value of earning money, as well as saving it. Teaching your kids to be smart with how they handle money will teach them a life skill that they will carry on forever.

Here are the best tips to instill good money habits:

  1. Use an allowance app

Kids love to use technology for everything, so why not attract them by using an allowance app that teaches them good spending habits. These apps that you can use to set different chores for them to do and when they complete it, they will get paid for it.

For example, you set up a chore such as cleaning their room, mowing the lawn, or walking the dog for 5 dollars and when they are done you will be able to transfer money through the app.

Using an allowance app will guarantee that your kids are going to enjoy doing chores more often.

  1. Teach them how to make decisions

Your kids think that all they have to do to get you to buy them something is by asking you and begging for it constantly. Typically, when your kid has done super well on an exam you will be happy to reward them with a new toy or a pair of new shoes, which is always a great way to keep them motivated.

Instead of always giving them what they requested, try to teach them to make decisions between two options. For example, if your kid has been begging for an exclusive pair of sneakers that they have been wanting for a long time but asked you to get them a new cell phone, remind them that they will not get the cellphone and the pair of sneakers at once. This will make them choose which item they want the most and will work on getting the second item sooner than later.

  1. Create a piggy bank with jars to show them the cost of items

The best way to teach kids how much things cost is by creating a piggy bank using clear jars. When they begin to earn money from doing chores, give them a clear jar to put their money in to save it until they need to use it.

Whenever they ask you to buy something they can afford, tell them to take it out of their money jar to show them that anytime they want to purchase something they will have less money in their piggy bank and whenever they earn money, they will have more in there as well. This lesson will also teach your kids how to stop impulse purchases that lead them to lose their money very easily and quickly.

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