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How to Teach your Kids to Spend Sensibly

Most of us aspire to spend sensibly, so it’s unsurprising if you want to teach your kids to do the same. But as you’ll no doubt say yourself, it can be tricky to coach children on finances. If you’re not sure how to introduce the subject, though, don’t worry. 

We offer three straightforward tips on helping your kids better understand the topic. 


  • Set a good example 


Ever heard the phrase “people learn by example”? Well, it exists for a reason: this is typically the best way to grasp a new skill – and most often, it applies to how we act around our kids. If you actively perform good spending habits in front of your children, they’ll be likely to make a subconscious note of them. 

You could apply this to your supermarket shop, for example. Bring the little ones along, and you’ll be able to guide them on when and how to seek out available bargains and discounts. On a similar note, you may decide to teach them about sticking to a budget, speaking of which…


  • Bring in budgeting 


Budgeting isn’t just for adults – you can introduce it to your kids, too. After all, they’ll need to learn this vital skill at some point in their lives; why not start now? Luckily, there are simple ways to make it seem fun and relevant for young ones. One way to do this is by setting up a fake store at home, where the kids can trade fun objects for small treats. You could invite them to swap buttons for sweets, for example – and teach them the value of spending wisely during the process. 

Alternatively, why don’t you give them a small amount of cash? If you tell them that it’s got to last for a set period of time, you’ll be underlining that once money is spent, it can’t be given back. After they’ve done it a few times, they’ll most likely learn the importance of saving


  • Let them watch you plan 


Want an easy way to teach your kids about sensible spending? It’s simple! Let them watch you plan your finances. So, how about asking them to join you as you work out your monthly or yearly financial forecast? If they seem reluctant, you could always incentivise them with a tasty snack, or promise to take them to the park or cinema afterwards. Talk them through each step as you perform it, and you’ll elucidate the process for them. 

You may want to tell them why essential bills are important, for example. Or you could simplify why you’re considering funding options. You’ll likely find that this helps the kids to better understand everyday finances. 

It may sound it but teaching your kids to spend sensibly doesn’t have to be hard – so long as you know, it can be easy. Follow our top tips, and you could help your children to grow into super savers.;tid=1;dt=6;

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