It can be difficult to instil a love of finance in children, but it is well worth the effort. Teaching them the basics early on not only helps build strong financial knowledge that lays a foundation for their future success but also encourages sound decision-making and practical money management skills. As devoted parents, you will want to provide your children with an understanding of finances that prepares them for adulthood and allows them to realise their full potential. In this blog post, we will discuss several ways how to inspire kids to become interested in finance so they have the necessary knowledge base when they enter adulthood.
Top ways to inspire children to get into finance
1. Discuss finance with your children early on to plant the seed for future interest
As a parent, it can be daunting to think about how to teach your children financial responsibility and set them up for future success. But the good news is that you don’t have to wait until they’re older – there are things you can do right now, as soon as your kids are old enough to understand simple concepts.
Start by discussing money with them frequently and using everyday tasks like shopping and grocery trips as opportunities to introduce budgeting concepts. Plant the seed of financial literacy early on and show them how budgeting, saving and investing can help them build a secure future.
Finances don’t have to be complicated or boring – follow your child’s interests and judiciously implement fun games or activities to pique their curiosity. Showing interest in finance from an early age could lead to wonderful career opportunities for your children in the future, so get those conversations started today!
2. Help them open a bank account and teach them how to save money
Setting your child up with a bank account, or GoHenry card, for instance, can be an invaluable tool in teaching them how to manage their money.
As a parent, it’s important that you don’t just put the money in their account and forget about it – this is a great opportunity to teach them how to save!
Talk to them about the importance of putting away some money into savings each month, and if possible, set up automatic deposits so they get into the habit early. If they want something but don’t have the funds to buy it – you can use this as an opportunity to demonstrate the power of saving and delaying gratification. Opening an account together could also be a fun day for you both!
3. Let them help you shop for groceries and pay bills – they’ll learn about budgeting in the process
Shopping for groceries and paying bills are essential parts of family life, but they can be great opportunities to help children learn valuable lessons too! By helping their parents with these tasks, children can start to understand the importance of budgeting.
Through activities like grocery shopping and bill-paying, kids can get a better grasp on concepts such as pricing, comparing items or services against one another, and calculating taxes. Not only will these tasks give children practical math skills that they’ll use in their daily lives, but they will also provide them with valuable experience in understanding how budgeting works.
If you want your children to grow up with a good foundation in budget management, try involving them in the family’s grocery shopping trips and bill payment routines!
4. Encourage them to get a part-time job or start a small business venture
Starting your own business or getting a part-time job can be a great way for kids to learn about managing their money – something that should be taken seriously from an early age. In fact, I used to make and sell friendship bracelets on the sidelines of my brother’s football matches when I was a tween!
Not only will it help them develop important skills, such as working in a team and building relationships with colleagues, but it’ll instil responsibility and help them understand the need to budget and save. Plus, it’s empowering for children to know that they are able to make their own money to support themselves!
Encouraging regular savings and setting up a pension plan is also worthwhile at this stage. Remember to talk to an accountancy helpline to get sound advice, and who knows, your child’s early financial education may even lead them towards the successful career they’ve always dreamed of.
5. Give them an allowance and explain the importance of budgeting and financial responsibility
Teaching your children the importance of budgeting and financial responsibility starts early and giving them an allowance is a perfect way to encourage basic money management skills. Explain that having an allowance gives them the opportunity to make choices about how they want to use their money, while still giving you as parents control and oversight.
An allowance teaches kids how to prioritize spending and save for important purchases. Help them set budgets and give rewards when they reach goals such as saving up a certain amount or not using their allowance money to buy sweets.
By teaching them these fundamentals, you will help give your children the knowledge they need to become confident money managers in the future.
6. Let them invest in stocks or mutual funds to teach them about long-term investing
Teaching children about long-term investing from a young age is an important lesson. By allowing them to invest in stocks or mutual funds, kids can get a firsthand look into the world of investments. Kids can start with small amounts that they know they won’t miss and then watch as their savings or investments grow over time. This can help them develop habits now that will set them up for success later on down the road when they need to make more serious decisions.
Investing in the stock market doesn’t have to be too complicated – there are plenty of resources out there including websites, smartphone apps, and more that make it easy for young investors to learn without getting overwhelmed.
Start early but start slow; talking with your kids about what you’re doing and why this might be advantageous for their future can help instil a strong mindset around money.
Inspiring children to get into finance
Parents and guardians play a crucial role in inspiring their children to develop an early interest in finance. You can do this by exposing them to financial concepts early on, leading by example, and encouraging positive money habits. By following these tips, you’ll help set your child up for a bright future filled with healthy finances.
What did you think of these tips? Do you have any to add? Share your thoughts in the comments below!
Last Updated on June 24, 2023 by Lucy Clarke