Steps in Helping Kids Understand Life and Money Lessons
17 January 2023
Being a parent comes with great responsibility. You need to prepare your kids to be resilient and quick-witted in making life decisions when they grow up. You don’t want them to experience what you have been through because you know facing struggles were never an easy feat.
However, helping your kids to understand life and money lessons is also overwhelming. You know that they are too young to learn such a complicated topic. To help you explain these lessons to your children, here are some quick and simple steps you can follow.
Teach Kids with these 7 Life and Money Lessons
As parents, you always brag about your achievements, like how you bought a house and lot in the Philippines or your brand-new car. But children think earning money is easy if they don’t know what strings you pull to reach these goals.
Here’s how you can teach them.
You need to work hard for money.
Always remind your kids that you work hard for money. It is not something you can quickly get in a split second. To make them understand, give them tokens or treats if they accomplish every household task.
Spend money on needs.
Kids do not know the value of money yet. Every time they receive monetary gifts, all they know is to spend them. To make your kids' spending money habits, let them know that it is important to prioritize their basic needs before spending them. Let them know that money is a limited source. You can provide examples of where it is best to spend them, such as paying tuition or bills instead of buying gadgets.
Differentiate the needs and wants.
Children cannot identify which ones are needs and wants. So, as parents, explain to them the difference between needs and wants. Needs are something they use to survive, like food, shelter, clothing, and water. Wants are something they can live without, like toys and electronic gadgets.
Learn to wait to get what you want.
Kids are sometimes impatient. That is why they usually throw tantrums if they don't get what they want. To help them understand, you must explain that some things take time before they can achieve them. An example is telling them how you save a lot of money to buy them an affordable house and lot unit.
Thus, make it a visual experience. Give them a transparent piggy bank and let them start saving if they want something to buy. Then later, open a bank account savings for them and allow them to experience depositing their money in the bank.
Parents need to earn money for basic needs.
Children know that parents should work to meet the family's needs. But, they do not know how hard it is to work to provide for necessities. So, let them understand that you are doing all this for them so that you can buy what they ask.
Only borrow money that you can afford to pay.
At a young age, kids need to understand that not all money you spend comes from your income. Some of them are borrowed. But, you must explain to your kids that you only borrow you can afford to pay.
On the other hand, they need to ask permission from the owner if they borrow things and make sure to take care of them.
Encourage your kids to save.
The concept of saving money is quite tricky for children. To help them save, encourage them to set aside a portion of their school allowance if they want to spend on something. If your kids achieve their goals, make sure to celebrate with them to let them feel appreciated.
The Importance of Teaching Financial Literacy to Kids
Personal finance lessons and financial literacy are seldom taught in schools. Therefore, it is our responsibility as parents to give our children knowledge and understanding about financial affairs.
Talking about money should not be a taboo subject.
Most parents never talk about money at home because they believe this topic is too much for them. As parents, you need to change this mindset and break those barriers using age-appropriate conversations. It can be helpful to teach them about budgeting, saving, and investing by giving them simple tasks or activities.
Children learn the value of money at an early age.
Learning the value of money can often be a family activity if you want them to know at an early age. Say, talk to your kids about your family’s financial goals. It can be traveling on a Holiday, saving up for an affordable house and lot for sale, or purchasing a car.
To get your children involved, let them help decide what your kids are willing to sacrifice to save money for your family’s financial goals. Then, give them separate savings accounts to monitor their own money. That way, they will understand how to spend wisely in the future.
Prepare your kids for the future.
Realistically, they will not remain kids forever. They need to face the real world and live on their own once they become adults. Thus, educating them at an early age is also preparing them to be financially ready for the future. They already know how to reach their goals by saving money and making wise choices. And they know how to avoid money traps to prevent themselves from drowning in debt.
Teaching kids about life and financial education should be normal practice at home. However, it should also be fun and exciting for them to get your kids' attention. Thus, living in a family-friendly environment is also an essential factor in helping your children grow as responsible adults.
That is why Lumina Homes built a master-planned community for homeowners wanting to create good memories for their families. It is surrounded by complete amenities and close to essential establishments. Besides being affordable, Lumina Homes offer quality homes suitable for modern living, which is an excellent investment for your family.
Find out where our housing properties are located in the Philippines. Leave a message in our chatbox or contact our nearest accredited seller for onsite tripping and reservation.

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