Firstly, we are glad that you are thinking of providing your child with a more robust education that includes the basics of finance. We know that kids begin learning new habits and ways to tackle the world from their parents.
We’ve covered different ways in this blog previously on various ways parents can engage their children in money management skills. We will repeat a few of the tips we mentioned… but with good cause, they are good tips (if we say so ourselves)!
1. Have open discussions with your kids
We’ve mentioned this before, but we are big proponents of having a dialogue with your kids. Share how your family budgets money on a monthly basis, spend on essentials, or allow your kids to ask you questions.
Of course, keeping it age-appropriate and sharing information that you are comfortable with your kids will foster a positive and open environment in your home.
2. Budget challenges
If money is tight and you are unable to give your child an allowance at the moment, then one way to teach them to spend wisely is to give them budgeting challenges at home. You can give them challenges like planning a grocery list using the online website and pricing of items from your local grocery store for 200 riyals. Have them assess items that are needed for the family vs. things they want.
3. Using 3 physical jars
Most times, visual learning is a great way to teach your kids (no matter their age). If your kids are young, we’d suggest teaching them the benefits of saving by using 3 jars. You can label each jar as saving, giving, and spending. If your child is provided with an allowance, then encourage them to divide their money into each jar.
4. Helping set a goal
One way to engage with your child is to help them with setting a saving goal. Sitting them down and helping them determine what is a need vs. a want is a great first step! Then, if there is something they want, creating a plan to help them save a small amount in regular intervals will show them how the goal is achievable!