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How to help your kids make good money choices

31st Jul, 2017

It is important to teach our children how to delay their wants and needs as they grow older. This is an integral part of transforming our children into fully functioning adults in the society. Therefore, teaching our kids good savings acts while they are still young, allows them to be financially successful and independent in the future.

As a parent, you are a little bit more experienced in handling money. James Russell Lowell once said, “One thorn of experience is worth a whole wilderness of warning.”  If this is true, parents are responsible for helping their kids make good money choices and this is how to do it:

  1. Talk openly about money

Keeping financial information away from the kids is a big mistake. The only way that they will learn is by understanding what their family earns and what items cost; what is a good deal and what is too expensive. This kind of financial education teaches the kids the importance of handling financial obligations wisely.

  1. Provide children with an allowance

Giving children an allowance provides them with an opportunity for a real-world lab experience that will help them understand the magnitudes of their purchasing decisions. As they make spending decision, it is vital that parents give them honest advice as well as insist on them constantly asking the right questions that will guide their decisions based on values.

  1. Comparison-shop

Help them reflect on matters such as cost, convenience and quality. With every choice we make in life, a trade-off has to be involved, right? This is a great way of kids to understand the financial implication of certain choices.

  1. Introduce them to a Savings Account

It is essential to teach the kids on the importance of saving. If they really want to buy something, let them save up for it. With a KCB Cub Account, parents have a platform where they can put money away for their children’s future. They can also use this platform to teach their kids on how to save at least a small percentage of their allowance.

With that being said, I hope all these tips will help you teach your kids how to make wise money choices!

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