Want to make sure that you’re doing all you can to pass on positive financial habits to your children to best set them up for later life? It can sometimes be difficult trying to make sure that you’re setting the best examples, and thinking of what lessons to teach them and at what age. To try and help you on that financial journey with your young ones, we’ve compiled a list of some positive money saving habits/tips to pass onto your children. Read on to find out more, and be sure to share some of your own experiences if you have them for you and your children!
Learning the value of money
While your little ones might not be wearing suits and trading on the stock market right out of the gate, teaching them about the value of money and how much things cost from a young age can help massively with their development and understanding of the world around them, not only helping them to get to grips with the way things work around the house, but appreciating what you do for them more, too.
A great first step for any young child is to buy them their first savings pot or ‘piggy bank’, as this will help them to visualise the process of saving up their money physically in order for it to pay off (quite literally), and it also helps massively with patience.
This is something that parents often opt for with children that are a little bit older, but a growing trend at the moment in the digital age is providing kids with their own small debit card and account that they can monitor through their phones and smartphones.
With many of us glued to our screens on a daily basis, it can help in getting your child more engaged and interested in learning about finances and money due to the apps that pair up, and parents can also monitor spending and place restrictions depending on what their children are doing with the money in their account. It’s a great midway point for parents that are thinking about providing their kids with their own account but aren’t sure if they are ready for the responsibility just yet.
Earning their own money
Of course, the concept of earning pocket money through chores and tasks isn’t exactly a new one, but it’s certainly important and one worth reiterating. Again, rewarding your children with money for doing jobs around the house and helping you out will not only benefit you in building a positive relationship with your child, but them earning that money through hard work will help them to appreciate it more, and think twice about what they’re going to spend it on.
Investing for the future
Once your children start to get a little bit older, some parents like to look into investment strategies that they can pursue together and learn, or even investments that they can make on behalf of their children to eventually pass over further down the line. Building up a bolstered investment portfolio can give your kids an incredible starting boost when graduating or starting their first careers.
If you look at the long-term bigger picture, property investment is an excellent example of an investment strategy that some parents investigate as an asset they can pass on to their child down the line as an inheritance. If you’re renting a property out for buy to let purposes, then you can stand to make a decent consistent rental yield income from purchases, and it’s something that you and your child can work on together if running like a business. RWinvest state in their guides to the north west in the UK, that cities are quickly growing in popularity and rising in demand, so investing in property now if done correctly could help you and your family out in the long term.
The same can be said for many other investment strategies, so it’s worth looking into!