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Sasha Jacob – 5 Ways to Teach Your Kids Good Money Habits

Picking up a good financial habit is relatively easier for the kids. The earlier they start, the more they can benefit from it. Kids are prone to learning new things every day, making it easier for parents to instill a good financial habit to them.

The parents hold a crucial role in shaping their children’s behavior. Expert financial advisor Sasha Jacob, believes whatever you teach your kids today contributes to how they view their finances in the future. Which is why you should be careful with the lessons you teach them as these can last a lifetime.

Sasha Jacob gives tips on teaching kids good financial habits:

1. Explain the difference between wants and needs.

A good way to start is by teaching them the difference between wants and needs. Provide a few examples and explain why groceries are needs but a new toy is a want. This is also a great chance to talk to your kids about savings by starting with a savings jar or a piggy bank.

2. Talk about it.

Share your thoughts with your kids regularly. Even while grocery shopping, you can teach your kids basic money awareness. You can compare prices of different brands to get the best deal and even hunt for coupons so they can buy their favorite snacks. You can also try splitting the family into two and have a friendly financial competition as to which team can find a better bargain.

3. Make the most out of every moment.

You can also focus on teachable moments. Learning moments happen just in time, right before, or at the moment you’re faced with a financial decision. This may happen to you as you receive your month’s salary from the HR and they start to explain all the benefits of signing up for a 401k retirement plan. For your kids, this moment could be when you hand them their allowance.

4. Help them set their goals.

Kids rarely think about saving up for their future. They’d usually head out to the nearest toy store or buy their favorite snacks after receiving some money. If you’re already giving your kids their allowance, it’s a perfect opportunity to teach them the concepts of budgeting and saving.

Encourage them to save a portion of their allowance and help them pick a short-term goal. This helps them see the reward of saving. However, Sasha Jacob Capital Management Inc. says reinforcing a habit of waiting or delayed gratification makes them realize how much they need to work for their goals.

5. Reward them for reaching their goals.

Once they’ve already set up a goal, it motivates them to save even more if you reward their little milestone. Like when you see them halfway towards their goals, you can help them out a little by placing a dollar into their jar or piggy bank.

6. Sign them up for a Savings Account.

Once they get older and have saved enough, you can help them open their first savings account. A savings account, much like a house, is something you own which could provide you with some economic benefit. Children who are familiar with savings accounts and already have one has higher chances of finding the value in building assets later in life. This can also improve skills like future planning.

7. Finally, make it fun!

Every child always prefers the fun method. So as much as possible, never make their experience dull. There are plenty of available apps on both Android and iOS that will help your kids understand money. If you look it up online, you’ll see that there are even cartoon music videos that teach kids to save.

Getting your kids to cooperate is probably the hardest part of this task. Sasha Jacob suggests teaching them in a way that doesn’t scare them off. Facing our finances as adults can be frightening, you can only imagine how your kids would feel. Make sure to help them with each step so it becomes an easier, less scary experience for them.



This post first appeared on Sasha Jacob – Jacob Capital Management Inc, please read the originial post: here

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Sasha Jacob – 5 Ways to Teach Your Kids Good Money Habits

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