Top 4 Tips for Raising Money Smart Kids

As an experienced lender, and a mom of 4, the top tips for raising kids with responsible money habits are super easy to do… and they can make all the difference!

1. Talk to your kids about money! Discuss the financial aspects of the decisions we make every day. Why did you choose no name over brand name or vice versa? How do you find and calculate sale prices? These are things we do without thinking all the time, but a smart money mindset needs to be taught. Start the conversation.
2. Teach your kids that money is not a taboo topic. It is very common in households across the nation to keep finances “private”. Many people feel that their money situation is not something to share with kids. I beg to differ. You don’t have to show them your annual statements, but kids should be aware that your financial situation plays a role in making decisions. Be open on the topic.
3. One thing leads to another. Kids need to understand that one money choice will trigger another one. If you buy a fish, you are also buying a tank, gravel, plants, and filters. Plus you need to continue to buy fish food and water conditioner on an on-going basis. So the sign that shows goldfish are $1.99 each actually adds up to a whole lot more. The message to teach here is… think ahead.
4. The 24 hour cool down. A good money habit for kids to learn is to wait a day before making a big purchase. This is something that will help them to avoid impulse buys and gain some perspective on a big spend. It’s easy to get excited by a shiny new item or a fast-talking salesman. See if they still have the same excitement a day later. Sleep on it!

Smart money habits are formed early. They are essential to building successful financial futures. How many of us have said, “I wish I knew more about money when I was younger”? Do your kids a favor… teach them now. They’ll thank you later.