Money lessons parents should teach their children

We all learn from our parents. But when it comes to learning about money and how we manage spending, are we inheriting good spending habits, or is there room for improvement?

3 Generations of women share their spending habits with us

These vibey ladies spend and save their money very differently. Who is the smart saver and who is the big spender? Gogo, mom, or Sandi? Find out the lessons and money skills they have learned.

What money lessons will your children learn from you?

• Teach them why they should save money
• Teach them that what they want is not the same as what they need
• Teach them how to manage spending and stick to a budget
• Share examples of successful people who started from similar situations
• Stay focused on your dreams to inspire them by your example

Activity to teach children how to save money and manage spending

In the Three Jars method, kids can learn to manage money as soon as they can count to three, while also learning some important lessons about philanthropy.

Children are never too young to learn about financial literacy.

A great activity you can do with your kids is to give them 3 jars and have them label them:

• Jar 1: Spend (for something small they wish to buy one day e.g. sweets, movie tickets or a toy, teaching kids that life expenses are normal).
• Jar 2: Save (for something big they wish to buy one day such as a new bike or games console. Some parents even adopt an incentive system like paying interest to the Save jar to encourage a greater savings focus).
• Jar 3: Share (for something they wish to give to someone else or a charity. Teaching children that some of your money is not yours to spend or save, but to re-invest back into your community, donate to a charity or a worthy cause).

Start right

Open an Current Account with GoTyme Bank to start saving and lead by example.