Omni Military Loans Blog:
How to Teach Children About Money Management
Saving money is obviously an important aspect of money management and financial know-how, but while you may be doing what you can to save, younger people may not know how. Military families can benefit from ensuring their children save money responsibly, which could help them later in life. Here are some tips on how to teach your children about money management:
What to teach
It is easy to just tell a child to save their money, but without any backing to the statement, children may pass this off as an instruction that isn’t immediately important. Explaining why these tasks are beneficial is crucial.
- Ask what they know about saving – Children may not respond well to lecturing, so seeing what they are aware of may help them become more engaged in the conversation. Also, it could give you a good basis to start your discussion about the topic.
- Explain to them the dangers of running out of money – It is obviously a bad thing to not have money to pay bills, but by telling children that money is important to take care of some of the simplest tasks is a good idea. You don’t have to scare them. Just show them why being responsible is necessary.
Demonstrating the importance of saving
There are also some things you can do to help your children become more aware of the stressors of not saving their money.
- Give them an allowance – This is important because your children can actually practice saving. Through this they will be able to have trial and error testing to ensure they get the right ideas about what they can and cannot do with money.
- Provide examples on how you are responsible – Another good idea is to show them you are doing what you need to do with money. This doesn’t include giving them bank statements, but you can set a good example with how you spend and save your money around them.
Your child may learn the importance of saving their money during your conversations and actions, but you still may be struggling, whether due to the difficulties of military family life, or other problems. There is no need to worry, as financial guidance is always available to fix these situations. Talking to Omni Financial about the various options available could help ensure a more sound financial future for you and your family.