5 Ways To Build Positive Money Habits In Children

As adults, the positive money habits as well as the bad ones we’ve picked up have mostly come from our parents and from seeing how the adults in our lives managed money. 

So, in this post, we’re going to share with you 5 simple ways to start building positive money habits in your children.

Lead By Example With Your Own Positive Money Habits:

Kids naturally want to do what their parents are doing. So, to be a good role model, instead of telling your kids to one thing and have them see you do the opposite, you need to lead by example in all areas – including when it comes to building good money habits.

If you want your children to have a healthy relationship with money when they reach adulthood, then you need to be the one who models what positive money habits should be for them as that’s going to be the most important influence.

Start Saving Early:

Learning to save money for something you want or simply for a rainy day is probably one of the best money habits you have.

This is something you should start teaching your children as early as possible.

Open a savings account when they’re born. Then as they get older, you can add to it each month or on their birthday.

As they get older, you can teach them about the concept of saving. The more they see their savings grow, they more they’ll want to save.

Involve Them In Shopping:

Including your children in anything you do is one of the best ways to get them to take notice. It makes them feel important and grown up. 

Many parents include children in cooking to encourage better eating habits. You could extend this to shopping.

You don’t have to take them along each time, but once in a while if you include them in the budgeting stage and even take them to the store, it can help them better understand the cost of things and become appreciative of the fact that food doesn’t just appear on the table.

Play Money Games:

Educational games that are fun and age-appropriate are hugely important for children, and they will love to play most games – especially ones you’re involved in.

One of the best games you can play with young children to help them develop good money habits and learn how money works is to play at shopkeeper or even banks. 

For older children, you could have a family game night and play Monopoly together.

Teach Them To Wait For Things:

Children can easily fall into the mindset of thinking that just because they want something, such as the latest superhero figure or mobile phone that they’re just going to get it handed to them at their request. 

This is understandable when they’re very young since they’re dependent on you for everything, but as they get older, it’s important to teach them good money habits that involve waiting for things they want and even saving for larger purchases.

So, if your teen is bugging you for a new phone, let them know that they can get the phone, but that they will have to contribute towards it in some way and save for a while to get it. This may seem harsh to them now, but it’s one of the best money habits you can teach them for later in life.

Love it or hate it, money is a fact of life, and learning how to manage it is an essential life skill, so starting early with building positive money habits is definitely something your children will thank you for later in life.