Here we are in month six of COVID-19. Life as we knew is forever changed. Both parents and children have been greatly affected by the pandemic in a multitude of ways. One place in particular is how coronavirus is impacting children’s educational learning. Teachers, parents, and students have had to adapt rapidly. So let’s take some of the power away from COVID-19. You can use this extended time at home to teach your children about money.
Coronavirus is here and there is no quick fix or magic solution in the known future. We must pivot and make it work for our families and our children the best we can. A top reason of stress during this time is lack of financial security. In June 2019, a Bankrate article stated: “Nearly three in 10 U.S. adults have no emergency savings. One in four have a rainy day fund, but not enough money to cover three months’ worth of living expenses.” https://www.bankrate.com/banking/savings/financial-security-june-2019/
Teaching Kids Core Money Skills
The earlier children understand how money works, the better. Also, teaching children money skills and good money habits at a young age, gives them a jump start on a secure financial future. These skills can be expanded upon and put into practice as your children go through childhood, the teenage years, into early adulthood, and beyond. Teach children about savings, investing, and the magic of compound interest. Educate your children about money in a way that money becomes a source of fun, excitement, and freedom instead of stress, fear, and worry.
Go to http://www.moneychimp.com/calculator/compound_interest_calculator.htm a compound interest calculator, and show your kids the magic of how money grows over time. You can teach your children how to grow money while they sleep! Saving and investing is a necessary component of creating wealth. The younger children start saving and investing the more time they have for their money to grow. You can start with small amounts of money but start, as time is on your side.
When you teach your children core money skills and good money habits, you are giving both your children and yourself a gift. Financial Literacy and Financial Responsibility are largely not taught in our schools. I think this is a travesty. I hope that money matters and money mindset will be mandatory teaching in our school systems in the future but currently for the most part it is not. When children learn to be financially competent they begin to form a positive, healthy relationship with money instead of fearing money because they do not understand it.
Get Creative, Have Fun
You can instruct your children about money in enjoyable, clever ways. Get creative, think out of the box, and educate your children about money matters while having fun. A good example is KiddieKredit https://www.kiddiekredit.com/ -teaching children about Financial Literacy through doing chores- now that is a win/win! KiddieKredit has an app to make it easy, engaging, and interactive. You can also teach and lead by example. Children watch what we say and do in regards to money, so be mindful of this and how you relate to money.
And Budget Like a Boss
Budgeting is always important and is one of the keys to financial freedom. Budgeting is imperative during COVID-19. Families need to track the money that comes in and the money that goes out. If you don’t track it, somehow that money seems to run away from you. You can Budget Like a Boss. You can also teach your kids to do the same. We control our money not the other way around, even in these circumstances. You can change your money mindset no matter what amount of money you currently have in your wallet. So take back the power from COVID-19. Teach your kids about money. When the clouds part and coronavirus passes you will be thankful you did.
Susan, The MoneyMaestra