How to financially empower your kids and teach them the value of money
Studies show that your attitude to money is often formed when you were a kid, influenced by your parents. You role modelling positive and empowering money behaviours is the best thing you could do to financially empower your kids.
This involves what you do with your money (I like to call it being financially fit) and also teaching your kids the value of money.
Teaching your kids the value of money in this day and age presents challenges with so much of value transfer done virtually rather than with physical cash.
Here are some of the things I do with my five year old son to help teach him the value of money:
(a) I let him pay at stores with both my credit card and cash. - this teaches him that when you want goods/services, you need to pay. Plus basic mathematics (when get change from cash).
(b) We have a piggy bank system - He is sometimes rewarded with “points” or “money”. He saves up his points to buy something special to him. From this he learns the art of saving and delayed gratification and also teaches him that to get something, you need to work (or earn it!).
(c) I encourage him to give to those in need and practice gratitude- whether it is money in the charity box each week, a portion of his birthday money towards a charity of his choice, getting him to choose some clothes/toys to give away or speaking to him about gratitude - this one is really important.
As my son and daughter grow up, the way we practice these may differ but the three principles will remain the same.
I’d love to hear from you, what are the ways you financially empower your kids?