Do’s and Don’ts to Raising Money Smart Kids

How do you raise children to be financially responsible in a world where our own economy has recently faced some challenging times? It can be easier than you think and with a few tips on what to do and not do, you’ll be on your way to raising some money savvy kids.

Do’s

Do start teaching children about money when they are young. As soon as your child has questions about money and starts learning math skills is a great time to start.

Do give young children an allowance. This is one of the best tools you’ll have at your disposal and the sooner kids are able use money, the sooner they’ll gain new skills in price recognition, making change and budgeting.

Do open up a bank account for your child for saving. Most of the major banks have accounts set up specifically for children and teens – many of them with no fees.

Do encourage your child to use some of their money to help others and give back.

Do start an RESP for your child’s education and encourage them help make contributions towards their post secondary schooling. You can find out more information about RESP’s and how the government of Canada will contribute to your child’s education through the Canadian Education Savings Grant at www.canlearn.ca

Do teach your child about advertising influences and shopping for value.

Do allow your child to make some mistakes with their money. This will provide teaching opportunities in how to avoid making the same mistake later in life.

Do set a good example for your children in how you budget your own money through SAVING, SPENDING and SHARING. If you don’t have a household financial plan and budget, seek the advice of a qualified financial planner to help your family come up with a plan for your financial future.

Don’ts

Don’t tell children they are too young to be asking questions about money and make it a “taboo” subject in the home. Instead, answer their questions open and honestly.

Don’t wait until your child gets their first job to start teaching them about money and how to budget. The earlier you can start them on the road to making smart financial decisions, the better.

Don’t buy your children everything they want. Make sure they have money at their disposal and allow them to budget their money for the things they want or need. Delayed gratification and pride of ownership are two of the most important skills they’ll learn in having to save up for a bigger purchase.

Don’t rely on school to teach your child how to budget and use money. The biggest influence on your child is YOU, and their ability to be financially responsible will come from what you teach them.

To enter to win The 4 Little Pigs Financial Kit for Kids please visit the CONTEST page. For more information or to purchase products to help you raise financially responsible kids, please visit www.fourpiggies.com

Jeanette Ramnarine is a mom, educator and award winning author. She is the CEO of Four Piggies Publishing which gives parents and teachers fun and creative tools to financially educate children. Jeanette has appeared on CBC radio, TVO kids and continues to share her message through writing, speaking engagements and media interviews. You can contact Jeanette through her website at www.fourpiggies.com