Teaching children about money is really important because the lessons they earn about money as children, will stick with them for life.
Try these things:
Give them a budget if they earn pocket money or have a job. Show them the 50/30/20 rule and how they can use this.
When you get paid, show them how your money is allocated to rent, groceries, how much is left over.
Show them your pay slip and how much money is taken out for tax, student loan and how much is left.
Say "no" more often and explain why: e.g those $2 lollies add up and end up costing x amount over a year.
Create a kids investing account for them and teach them about risk management, time in the market, dollar cost averaging
Don't pay them to do jobs around the house. This teaches them that you get paid to do your own dishes and washing which doesn't happen. Instead, get a small job with them such as a mail run or mowing someones lawn and split the money with them and show them how it can be used in a good way.
I wanted to share something which is an amazing way for Whanau to modernize money with their own kids. It's called 'SquareOne'.
If you’ve been wondering how to teach your tamariki about money, we’ve got the solution for you! With Aotearoa’s first youth account, SquareOne is an app that fosters great habits and learning about money, while giving kids the opportunity to set goals, earn money and gain some financial independence.
This FREE app, downloadable from Apple Store or Google Play, is super easy to set up and use, and the whole whānau can get involved too. You can set jobs for your kids to do, set up and automate pocket money, and have control over what your kids can do with their card. Each kid you set up on SquareOne gets their own Mastercard (just a payment card - not a credit card), which really helps when no one carries cash around anymore. We’re heading toward the digital age, with everything done online and the tap of a card, so what better way to teach them how to manage their money than their first youth account with SquareOne.
If you’ve got one device in the house, kids can access their SquareOne profile using our Family Mode. If they have their own, they can have SquareOne on their device - there they can set up savings ‘Pockets’ and track their savings, check their spending, see the jobs you’ve set them, and learn great money habits along the way.
They have had some great reviews from parents around the country who have been using SquareOne in a variety of ways. Also a couple of pretty thorough ones on Money Hub and Stuff.co.nz too. Gone are the days of jars of coins, or little plastic pigs from the local bank - our kids are growing up in a cashless world, and parents need the tools to keep up with the times.
Get your kids helping out around the community and earning some money along the way. Teach them the skills they’ll need to thrive in the future. Yes - money can be a taboo subject, but with SquareOne we can start to have those everyday conversations to make sure our kids are learning the right stuff at the right time, for their future.
Use the code: MONI5 when you sign up - you’ll get $5 to kickstart your kids’ savings once you’ve topped up!
So, if you've managed to digitalize your putea for your kids then implementing the other ideas I have will become easier.