Estimated reading time: 5 minutes
Empower your kids with basic money skills for a secure financial future. From saving to debt management, teach them about essential finance concepts.
When I was younger, I vividly recall hearing my father say, “One day you will understand the importance of basic money skills,” after throwing a fit because I couldn’t buy a toy.
Although my parents went on to teach us the value of money, learning about other aspects of finance would have been beneficial.
Before parents can teach children about money, they must have a grip on personal finance.
Plenty of financial education is online and on Canadian Budget Binder to get you started.
When you feel confident, please take what you’ve learned, apply some of the basic money skills below, and explore them with your children.
Basic Money Skills Parents Need To Teach Children
Some examples of what you could educate your children about;
- Saving for a rainy day- What are Emergency Savings?
- Saving to pay off debts- What is a Debt? Why do people go into debt?
- Saving for Education- Not all parents open a Registered Education Savings Plan (RESP), so teaching children about saving for school is imperative.
- Bank accounts– types of accounts, set up a meeting with the bank professionals if needed to explain.
- Importance of an allowance using the MyDoh Money App
- Include your child in my 52-Week Savings Challenge
- Budgeting Basic Money Skills For Kids
- Taxes – Why do we pay tax? How much tax is calculated, and on what items?
- Credit Cards- What are credit cards? When should we use them? When should we not use them? Interest rates? Perks and Rewards Points Available.
- TFSA– What is a TFSA, and when can they start putting money away?
- Temptation– The Difference between a “Need” and a “Want”
An Allowance Is One Part Of Basic Money Skills
I could go on and on, but the reality is that children need to know this information.
The toolbox of life should include finances along with love and education
An allowance is excellent as long as there is a responsibility that comes along with the payment.
Simply handing over $15.00 a week to clean their room but never checking it is not teaching them anything.
Opening My First Savings Bank Account
My first job was as a paper boy, and I honestly admit I had no idea what I was doing with money.
I knew my parents made deposits at the bank, so since we lived close, I wandered inside.
Then, I opened a bank account to deposit my collections and pay the monthly paper bill.
Bank tellers must have thought I was a child with a savings account addiction.
There wasn’t a day that would pass when I wasn’t in the bank, fascinated with money.
I loved seeing my bank account grow, even if it meant depositing $1.00.
Learning from banking professionals at the age of 12 inspired me to ask lots of questions.
I went on from there to continue my savings into adulthood with a knowledge I can never put a price on.
Parents Need To Be A Child’s First Financial Life Line
It’s up to the parents to take the bull by the horns and teach children basic money skills while they are young.
You aren’t going to cause them any harm; they may thank you one day for these life skills.
If you, as a parent, do not feel you are educated enough, hundreds, if not thousands, of financial experts at banks or other organizations are waiting to help you.
Make the call!
Financial Literacy Is For Life
As the saying goes, “I wish I knew then what I know now” would have given me a deeper foundation for the future.
Help your kids build a solid financial foundation with basic money skills. Learn how to prepare them for a secure future, from savings to debt management.
Allow your children to say, “I remember my parents saying something about RRSP,” is better than not knowing about the program.
Discussion: What have you taught your children about Money?
Please leave your comments below.
Thanks for reading,
Mr. CBB
I don’t have any children – and the cat just refuses to listen! 🙂 I try to impart small lesson to my nieces by not buying them things when we’re out, or just setting a strict limit if I did plan to get them something – and not budging!
Haha.. I hear ya! Mr.CBB
Our kids saw us dealing with money issues and how they were dealt with…or not. They always knew money was tight here. I still remember the time our daughter needed a new pair of shoes…. first place she looked was the flyers to see who had what on sale!! We plan shopping trips around the sales flyers and she knew it then and she knows it now with our grandson!!!!
Sounds like a smart little girl. She will take all of this and run with it. She may just learn what the value of money is and why it’s important to save and look for deals. We do the same and always go to the flyers and deals but never pay reg price. Mr.CBB