How To Talk To Kids About Money
How To Talk To Kids About Money And Avoid Scarcity Mindset.
βMoney is not the most important thing in the world. Love is. Fortunately, I love money.β - Jackie Mason
As parents, it's our duty to teach our little ones about money and how to handle it like a boss.
But it's also important to give them that abundance mindset, so they know that there's always enough dough to go around and they can make their dreams a reality with hard work and smart financial planning.
In this blog, we're gonna break down how to talk to kids about money and give them that abundance mindset. π
1. Show them the money
Show them the money: Explain to kids how money is used in the real world and how it can be exchanged for goods and services. This can help them understand the value of money and how it can be used to meet their needs and wants.
2. Encourage them to save
Help kids learn the importance of saving money by setting up a piggy bank or savings account for them. Show them how saving money can help them achieve their goals in the future.
3. Get resourceful
Teach kids how to be resourceful with their money by encouraging them to think creatively about how to stretch their resources. This can help them develop a sense of abundance and see that there are always options and opportunities available to them.
4. Lead By Example
As a role model, share your own abundance mindset and positive attitude towards money with your children. Show them how you approach money with a sense of abundance and optimism, rather than scarcity and fear.
5. Keep An Open Mind
Encourage kids to be open to learning about money and new opportunities. Let them see you doing the same, for example, discussing new financial opportunities with them or taking a financial class together.
6. Practice Gratitude
Teach kids the power of gratitude and how it can help them attract more abundance in their lives. Encourage them to focus on what they have, rather than what they lack.
7. Celebrate Those Wins
When kids achieve their financial goals, celebrate with them. This can help them see that financial success is possible and that they can achieve it themselves.
Research has shown that an abundance mindset can have a positive impact on individuals' financial well-being. By teaching kids about money in a positive and encouraging way, we can set them up for success in their financial future. It's important to make the conversation about money a regular and ongoing part of family life, so that kids feel comfortable asking questions and discussing money-related topics as they grow older.
Overall, by adopting an abundance mindset and teaching kids about money in a positive and encouraging way, we can help them develop the skills they need to create a financially secure future for themselves.
Here are what to β AVOID saying to kids about money:
When talking to kids about money, it's important to be mindful of the language and messages we use.
"We can't afford that." Saying this can give kids the impression that money is always tight and that they can't have what they want. Instead, try saying something like "That's not in our budget right now, but we can save up for it."
"Money doesn't grow on trees." This phrase can make kids feel like money is hard to come by and that they need to be careful with it. Instead, try explaining that money is earned through work and can be saved and invested to grow over time.
"You're too young to understand." This can make kids feel like their ideas and questions about money are not important. Instead, try to explain financial concepts in a way that they can understand, and encourage them to ask questions.
"Money is the most important thing." This message can create a sense of materialism and a belief that money is the key to happiness. Instead, try to emphasize that money is important for meeting basic needs, but it's not the only thing that matters in life.
"Don't talk about money." This message can make kids feel like money is a taboo topic and that they shouldn't ask questions about it. Instead, try to make the conversation about money a regular and ongoing part of family life, so that kids feel comfortable asking questions and discussing money-related topics.
"You should be rich by now" or "Money will solve all your problems" these statements can create a false idea that money is the ultimate solution to everything, and it can increase anxiety, and make kids feel guilty if they don't have a lot of money.
In short, it's important to avoid negative messages about money and to approach the conversation with kids in a positive and open way, while emphasizing that money is a tool to help us achieve our goals and improve our lives, but it's not the only or most important thing in life.
Entrepreneurship is VERY effective way for kids to understand money and its valueβ€οΈ
Here are a few reasons why:
π Hands-on learning: When kids start their own business, they learn about money in a hands-on way. They learn how to create a product or service, set prices, and sell it to customers. This helps them understand the real-world value of money and how it is earned.
π Understanding of financial concepts: Starting a business also helps kids understand financial concepts such as budgeting, saving, and investing. They learn how to allocate their resources, plan for expenses, and make decisions that will impact their financial success.
π Problem-solving and creativity: Entrepreneurship encourages kids to think creatively and solve problems. They learn how to identify opportunities and come up with innovative solutions. This helps them develop critical thinking skills that will serve them well in all areas of their lives, including money management.
π Sense of responsibility: Starting a business gives kids a sense of responsibility and ownership. They learn how to take care of their own business and understand that their actions have consequences. This can help them develop a sense of accountability and a strong work ethic.
π Self-empowerment: Entrepreneurship can also empower kids to take control of their financial futures and create their own opportunities. They learn that they have the ability to shape their own lives and that their financial success is not dependent on anyone else.
Overall, entrepreneurship can be a valuable tool for teaching kids about money and its value. It provides them with hands-on learning, an understanding of financial concepts, problem-solving and creativity, a sense of responsibility and self-empowerment.
