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Asking our children about money can lead to some interesting conversations. If you have kids of your own, you may be wondering how exactly to introduce them to money - and whether your finances (or finances in general) should be a regular topic of conversation in your home.
One of the easiest ways to engage kids in conversations about money is by asking them some thought-provoking questions that will help jump-start a valuable learning lesson. But knowing the right questions to ask can be the hard part!
That's why in this week's blog, we're expanding our educational content on family finances with 7 insightful questions to ask your kids about money.
1) How much do you think ___ costs?
It can be entertaining to find out what a child thinks an item in the home costs, but this can also help them learn the true cost of living. Ask them "How much does a TV or bottle of shampoo cost?" Their answers may amuse you and can provide an important reality check for them!
2) What's the difference between Credit and Debit?
Credit education isn't taught in schools, so it's important this conversation starts in your home to avoid bad spending habits later in life. Ask them "What's the difference between a bank card and a credit card?" Make sure to emphasise that using credit = borrowing money and that it must be paid back.
Once your child has grasped the concept of credit and debit, why not introduce prepaid cards into the mix? Whilst mostly similar to debit, there are some differences, and prepaid cards can actually help you save money!
3) Why is it important to save money?
Introduce your child to the concept of saving money as young as possible so that they can reap the benefits later in life. Ask your child "why is it important for us to save money?". You can also use this topic to segue into another conversation regarding saving for emergencies (emergency funds) or retirement etc.
4) What is a budget?
Many adults are still Googling this question, so it's important children are taught about budgeting from a young age. Ask them what they think a 'budget' is and use the experience as an opportunity to teach them.
BONUS TIP: Use the ImageNPay Family app to help your child learn to budget whilst gaining financial independence with their very own prepaid card. Each card comes with a balance that you, as the parent or caregiver, can set limits to.
Your child can also send top-up requests if they run out of money, and you can view all transactions to monitor their spending in real time!
5) How much money do you want to earn one day?
Ask your child "How much money do you want to earn one day, and why?". The 'why' is important - and based on how realistic their answer is, it may be time for a teaching lesson/reality check!
You could also then try asking them "what can you do to earn money?". Help them brainstorm ideas and, depending on their age, possible part-time jobs they can take up in their teens.
6) Which is cheaper: cooking dinner or buying takeout?
You can also replace this question with other scenarios, for example, buying a new phone up-front vs paying in monthly instalments etc. Turn it into a fun game by using real-life examples in your everyday life, e.g. is it cheaper to take a taxi to school or use the bus?
8) How can we use our money to help others?
Lastly, it's important we remind our kids of the importance of giving back when we can. Use this question to teach your children that money can be used to help others e.g. through charitable donations or by funding important projects.
Finish off by explaining there are also other ways we can help causes without money e.g. with our time through volunteering or by raising awareness.
To discover more about ImageNPay and the benefits of joining ImageNPay Family, tap the button below and download FREE on App Store and Google Play today!
*Questions adapted from Teach.Kids.Money