It’s important to teach your children about money management . Most people learn most of their knowledge and skills with money from their parents. And It’s never too early to start.
We have some simple ideas for talking to kids of different ages.
For young children, simple activities and games that help them identify coins and bills are a fun and practical way to introduce money concepts. Another approach is to encourage them to save with a piggy bank using a clear glass or plastic jar so they can watch their money grow before their eyes.
Organizing a yard sale or lemonade stand can help your kids apply their knowledge of dollars and cents, while teaching them how to budget for supplies and manage profits or losses, as the case may be. It’s also a chance for them to experience firsthand how much time and effort it can take to make money. When your children are old enough, you can open chequing and savings accounts for them to periodically deposit their “earnings” and track their spending. Review their statements with them so they know what the numbers mean and how much cash they have in the bank. This is an ideal way for them to learn about interest.
Review the household bills together to help them recognize how their actions – like leaving the lights on or running the tap for too long – have financial consequences. Similarly, explain what you’re doing when you use an ATM card and take tie when you’re shopping together to point out money-saving opportunities. Most teenagers want autonomy and to contribute to their lifestyle needs, so part-time work can be rewarding and help them learn to save more. Once they have a steadier income, give them responsibility over some of thier expenses, like a phone or internet bill, and enforce real consequences for late payments if need be.
This information has been prepared by Raymer Financial who is an Investment Advisor for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this document comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered.
iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.