Nanny to Mommy

Learning how to manage money is so important, but it’s not something that we learn in school. This is why parents need to teach their children to be financially responsible. But how? I know that it is a scary thing to do, but follow these tips and you are ready to get started!

I have found that the earlier you start a child’s financial education process, the better. So many adults nowadays have zero clue how to handle their money and budget. This is because there are no classes to help them learn this. It’s up to their parents...and most do not talk about finances, unfortunately. Research shows that money habits are formed by the age of seven or so, so get an early start of the basics! How do you begin? Once your kids are old enough to know they shouldn’t be sticking pennies in their mouths, you should introduce them to coins and cash. Explain what money is and how it is used. Actually, showing them how money works is more effective. So let them see you making purchases with cash. Even if you pay with a card, explain to your children that it is a form of payment and maybe even teach them about how they can see the money coming out of their account in an app or at the bank.

Spending money is an easy lesson for kids to learn, but when it comes to saving, that is a harder subject to teach (and learn) because you are not actively using a card at a grocery store or a bank more than likely. It is important to teach that yes, money is for saving, but it’s for spending too. Saving also teaches discipline and delayed gratification, which can be hard for kids. An easier way to help them with this is to create a short-term savings goal, like a small toy!

Kids need to have money of their own so they can learn how to make decisions about using it. An allowance can accomplish that. However, you should consider requiring your kids to do certain chores to earn their allowance. Learning that money is earned is a good thing in my mind because it is teaching them about the not-so-pretty real world. Money doesn’t just fall into your pocket. You have to work for it, even when you do not want to. There are some chores the kids have to do without pay because they’re expected to help out as part of a family. But if they want to get paid, they have to complete certain tasks. Some banks have options of debit cards for kids to use. That way, you can track their spending of their allowance.

You want to teach your children how money is earned, but what about teaching them about how to live within a budget and make good spending choices? If you have older children, they are more than likely always asking for spending money. Instead of just handing it out left and right, start paying them an allowance and tell them that they have to figure out how to manage it. Better yet - teach them gently how to use their money wisely. Showing them that they have to keep track of how much is coming in vs. how much is going out will help them learn how to better budget and manage their money when entering the real world. A great tip that I learned is to give your kids three jars: one for spending, one for saving, and one for giving. The decision of how much to put into each jar is up to them - and their decisions can come with potential repercussions if they need something and do not have a savings for that item/service.

Financial apps for kids are a great way to teach children about financial responsibility because they provide a fun and interactive learning experience. These apps make it easy for parents to introduce their children to important financial concepts like budgeting, saving, investing, and donating. With financial apps, kids can learn by doing, which helps them develop good money habits early on. They can track their allowances, set savings goals, and even invest in real stocks in a safe and controlled environment. Financial apps also give parents more control over their children's spending and saving habits, allowing them to monitor their progress and provide guidance as needed. Overall, financial apps for kids provide an effective way for parents to help their children become financially responsible adults.

The best way of all to teach about good money habits? Model good financial decisions. That means that you need to get back on track with your finances and that is a great learning experience to show them. If you are experiencing it yourself, teach them how to pay off high-interest debt. Show them how you are budgeting for a vacation. Teach them by showing when you are struggling to make ends meet. Sure, it’s not always pretty, but most kids learn by watching and this is no different than any other subject. If you have valuables lying around your house that you do not need anymore, I have a great way to show your kids how to pay off high-interest debt (or make extra cash). Chapes-JPL is an asset and jewelry lender based out of Atlanta (they also offer online services too). They have been in business for over 40 years and you can sell gold in Loganville, GA, sell diamonds in Atlanta, or get a low-interest asset loan for a valuable handbag or watch, even if it’s from the comfort of your own couch! They offer loans as low as $100 and as high as $5 Million at some of the best interest loan rates in the industry.

Unlike typical pawn shops that lend at extremely high rates (and in public storefronts for the world to see), Chapes-JPL provides loans at low rates and in private financial offices located in Buckhead, right off of Lenox Rd. Chapes-JPL can help you if you need a low interest loan, want to sell valuables for cash immediately, or even if you need a business loan. If you do visit them, take your children with you and teach them all about loans!