Tips For Teaching Your Children About Money

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

One of the most important skills a parent can teach their children is how to properly manage their money and how to effectively tackle any money related matters. And considering that money is a topic they will hear about throughout their entire life and something they will be responsible for, it's important to get them into good spending and saving habits from a young age. However, as your trusted financial planner, we know that talking to children about money can be a difficult feat, which is why we've put together the following tips for you to use when teaching them about it:

Let them make decisions: As a parent you may be inclined to stop your child from making a purchase that you see as unnecessary, however, allowing your child to make a mistake is one way to teach them the value of a dollar. If you give your child an allowance when they are young, let them make their own decisions on what they'll do with it, even if it's something you wouldn't recommend.

Have them tag along: Learning by seeing and doing can be an effective way to help your children get a good grasp on a lot of things. Specifically focusing on money, have your children tag along when you go shopping so that they can see first hand what you do with yours. For example, if you tend to seek out discounted or sale items, your children may be quicker to catch onto the value of doing so if they see you do it in person rather than just being told.

Set up a change jar: Whether you use a traditional piggy bank or empty jar that you have at home, give your children the opportunity to watch their money grow by saving. If they get an allowance, suggest that they put a certain portion in the jar each week. Similarly, if they do make their own purchase and have coins left over, suggest that they put it in the jar too! Over time, they'll have the chance to see their money increase (an exciting thing for people of all ages), which could encourage them to develop great saving habits.

Although we place much of our focus on financial topics such a retirement planning and estate planning, we understand just how important it is for children to set themselves up for financial success too. If you have questions about financial planning as it relates to your entire family, please give us a call at (516) 932-5130 to start speaking with one of our financial planners; additional information about our services can also be found on our website.