How to teach your kids about money

Families should be encouraged to take a close look at their financial strategies and habits so that they can better provide for themselves and their families.

But if you have children, you may wonder how you can help them develop a healthy attitude towards money. Here are three great ways to teach your kids to be financially literate.

1. Let them make their own purchases
Give your kids hands-on experience managing money. If you provide them with a reasonable allowance they’re free to spend as they like, it will help them grow into smart and confident consumers. You might consider tying their allowance to chores to show them that money is earned rather than given.

2. Teach them to save and to share
A useful technique is to have three jars and label them saving, spending, and sharing, then get your child to divvy up the money he or she receives — or earns — equally between them. The sharing jar will teach them about the importance of charity, while the saving jar will teach them to delay gratification and think towards the future.

3. Help them make smart buying decisions
If your children aren’t already more internet-savvy than you, it probably won’t be long before they are. The internet’s a great place to compare products and consult customer reviews. Encourage your kids to use their internet-navigation skills to make informed decisions about what they buy.

Most importantly, remember that children tend to take after their parents. To ensure that you’re setting a good example for your kids, it’s a good idea to pay attention to your own money attitudes and habits.