Why Do We Need To Teach Kids About financial literacy?
Financial literacy for kids is lacking so the need to teach kids about money is vital. With households paying for most items via card and not cash kids just aren’t getting the education required to understand the value and power of money.
Before the days of credit cards and Afterpay if you didn’t have the money in the bank you simply couldn’t afford it. Today we live in a society with the mantra of “Live now, pay later”.
Recently it seems that young people rarely even handle actual cash and this has become a real problem.
We have all heard that government wants to move to a cashless society. This will mean that all transactions are online and each one is able to be tracked.
Finances these days seem to be the bane of every person’s life but this is especially true for all parents. It never seems to be the right time to teach kids about money, or we just don’t have the time.
Where it comes from, where it goes and why seems to be the nirvana that everyone aspires to. Our kids spend hours watching social media “reality” that indoctrinates them into a world of having everything now.
There Is Never Enough Money
There never seems to be enough money to go around or to put aside for that all-important savings fund.
Kid’s college funds, holidays, or those must-needed renovations always seem to be too hard to reach. There seems to be always something that is urgently needed for numerous reasons and we look to credit cards or easy credit to get what we need.
I am not that old that I can’t remember my parents and grandparents talking about savings. That was the only way they could afford to buy things.
Parents would teach kids about money by educating them that you had to pay your bills before you could spend money elsewhere.
Remember that once upon a time there was no such thing as credit!!! No credit card, no store debt, no pay later. If you didn’t have the cash right there and upfront, the simple fact was that you couldn’t afford it!!!
Teach Financial Literacy for Kids Early
Those unexpected (or sometimes unwanted) surprises always seem to crop up at the worst times.
Whether it’s music lessons for your youngest, a big birthday bash that needs funding, or if you just want some money aside for a rainy day, there are a lot of places you can look to find the cash.
1. Make Lent Last A Little Longer
Have you ever given up something for Lent without realizing the potential it could have for helping out your daily life? If you’ve never tried it, this Christian tradition involves giving up something that you either love or just use a lot of. Giving up chocolate is a major one as it ends with the coming of Easter.
Traditionally, the money you save goes toward your church, but this challenge can be equally handy for parents to undertake, as you can put the money into your savings instead. Make the lent season last for as long as you need it to in order to reach your goal, and it might help you cut down or cut out a nasty habit in the meantime.
2. How Can Your Bank Help?
A lot of people think that banks are just there to take your money, but some accounts can be incredibly useful in topping up your savings.
You just have to know the lingo and understand how to navigate through the terminology. I found this great guide on how to boost your savings, and it covers everything from ISAs to allowances.
3. Hunt for special offers
If you’re used to going to the same supermarkets and picking up things as and when you need them, then you need to seriously rethink the way you shop. Always shop around online for the best price if you’re buying large appliances or home entertainment pieces, as the brand website doesn’t always tell the truth.
Plus, you can get some fantastic deals on bulk buys if you know where to look. I always buy Brother printer cartridges as a batch when there are special offers. It may be a small saving, but they all add up.
4. Plan for the unexpected
I always start each month with a budget. I list everything that I know is going to go out, but I also make a contingency fund for whatever might go out. You never know when the kids might spring something on you, and how many times have you had to say no because you just didn’t have the money?
By allocating a small amount at the start of the month, you’re covered for any potential hiccups, and if it’s still there by the end of the month, put it straight into the savings pot.
I hope these tips were useful. Where do you look for money when you don’t have it? Share your thoughts in the comments section below.
If you want to learn more about positive parenting, visit our page, Creating Goals With Your Family in Mind. In this article, you will learn how to increase your financial wellness and how to reduce waste.
With an educational background Alana loves the science behind child development. Her passion is the way in which children learn and grow. After an accident that ended her career as a teacher she has dedicated herself to studying child development. She has been learning styles to help influence teachers with the needs of different children. She hopes to one day have a big impact in this space and we are so lucky to have her as part of our writing team. Alana is mum to 3 young adults and loves being a big part in their life.