Children need to understand how to use money, it is important for them to learn about smart money management concepts from a very young age as this will help them to use their money wisely in the future. But how can you teach a child on how to deal with money the right way? well, the first thing and the most important thing you must have is a good relation with money yourself. It is you that are leading by example, and what you do and say regarding money (or any other things as a matter of fact) will condition your children’s minds and the relation they have with money for the rest of their lives. They are sponges and they learn by imitation, so what you think, say and do matters a lot.
My suggestion to you is start creating habits on your children that potentiate their success later in life. Every small things count, like for instance helping your children save 3 jars or plastic containers and label them Spending, Saving, and Investing, and when they get some money discuss with them where they should put their money, like opening a savings account. It is fun and you can even do it yourself, take 3 or more coins or bills out of your pocket every day and place them on each container.
This is an extremely important step for a good money management, both for you and your children, they learn that their income must be separated and managed in order to improve their wealth while having the things they need. It looks simple or even, heck, childish, but the results may be phenomenal on the long run. It is never late to start, so start today.
Implant in their minds thoughts that aren’t limiting, explain them the importance of money, tell them that there are infinite amounts of money and that they can get them from several ways other than working 8 or 12 hours a day, they can make smart decisions, investments, being adventurous and they will increase their wealth along their lives. There are plenty of money to go around and millions of ways to get it, in fact it’s more easy to make money that not making it. What about that!
You can start helping yourself on the process by taking some Courses on money management or good money practices, it doesn’t take any space on your head, is quite cheap or even free and the results can be overwhelming.