It is important to train our children at a young age how to be wise with money and teaching them how to budget and save.
Every now and again I come across a young adult who has bought their first house in their late teens or early twenties. In fact, I met a young nurse going through university, just recently, who had bought her first house. When I asked her how she had managed to get into her first investment at such a young age whilst she was studying, she said she had a number of part-time jobs even whilst she was still at school and had learnt how to save. She had set herself a goal to get a house.
There are a number of financial education apps such as “Spriggy” where children can learn to set goals and targets. Most children who have not been given financial training by their parents will spend all their pocket money and later their savings from their part-time jobs after school at the shops of video games, and later on bigger items such as their first car or bike.
It is important as parents that we teach our children at a young age to have financial goals and how to budget and save some of their pocket money and later their earnings from their part-time jobs. If they are taught these skills early, as early as kindergarten- they will carry these skills and habits right through their lives.
Teach your children to split their money up. Have separate pockets or envelopes for a specific item that they have set for a goal, an envelope for spending and maybe an envelope for donations. Sit down with your children and show them how to draw up a budget. Teaching kids to save and budget will get them to excited and drive them to be successful adults.
It is never too early to talk to your children about money and goal setting.