Raising Financially Savvy Kids

Tending to your children’s financial well-being, is setting them up for success, and is one of the best gifts a parent can give. Not only will they learn how to navigate life without the challenges of financial instability, they’ll also be able to confidently identify and take advantage of opportunities. When we think of giving children a good start, we often think of putting money aside for their future, but that only scratches the surface. Whether you come from a wealthy family or not, there are more ways to ensure that a wealthy family will come from you.

If you aim to raise financially savvy kids in today’s world, here are three things you can do to make it happen.

Lead by Example

To raise financially savvy kids, you need to lead by example. Your children will be more likely to follow what you do, regardless of what you say. So, creating an environment where they can see and learn from your financial decisions is a great way to prepare them. Some good ways to do this, include:

• Paying your bills on time.

• Living within your means.

• Saving for the future.

• Managing debt wisely.

• Making smart financial decisions.

When children see you making good financial choices, and understand why you make them,, they’ll be more likely to make good financial decisions themselves.

Teach Financial Principles

Once your children have a basic understanding of how money works, it’s time to start teaching them financial principles. Using terms and explanations appropriate for their age, you can show them the importance of budgeting and saving. You can teach them how to put money to work by investing. You can also explain the importance of using credit responsibly.

There are many resources available to help you teach your kids the basics when it comes to personal finances. The VM Financial Group's website provides financial education resources. There are also books, apps and other web-based resources that can help you teach your kids about money.

Provide Opportunities for Growth

The best way for children to learn and retain what they’ve learned is by doing. Once they have a basic understanding of financial principles, you can start providing them with opportunities to put what they’ve learnt into practice. Giving them an allowance is a good way to get them started. You can also let them sit with you and help with the family budget, as long as your explanations are tailored for their level of understanding. Although banking can be done online these days, taking them to the bank and opening a savings account for them is another good learning experience. It’s also a chance for them to see more of the world of finance. When they’re ready, you can also help them invest in a savings bond. These kinds of learning experiences create opportunities for growth and will help your children develop more of the skills they need to make smart choices.

Raising financially savvy kids takes time and effort, but it’s one of the best gifts that you can give. By following these three steps, you can help your kids develop the financial skills they need to succeed.