For many parents, the thought of teaching their children about money is an intimidating task. How much will they understand now, as children? Is now too early to start talking about money? Overall, the right time to start talking to your children about finances is now! Here are five tips for generating conversation with your kiddos about money.

Talk about money out loud

Often, talks about money are kept private or between you and your partner. Allow your children to be in on the conversation as well! Include them in what your bills look like, your grocery bill, and even the prices at the gas station. Conversations like these will help them manage money early on and give them a realistic look at costs.

Show them opportunity cost

With every choice you make, there is something else that is given up. It is imperative to teach children about the possible outcomes of their decisions – especially financial ones. For example, if they choose to buy a new toy, they decide to forego the new pair of shoes they wanted. This teaches children that, while they may not be able to have what they want right away, working hard and saving money is worth it.

Encourage them to save

There’s no better of a time than now to start saving money – no matter how old your kids are or what they’re saving for. Whether it’s a new gadget, their first car, or even college, they’ll learn that putting away money now will quite literally pay off in the future.

Show them the importance of giving

As your kids begin to have money of their own, it’s a great opportunity to teach them to help others with the resources they have. Whether donating money or their time, they’ll see that helping others in need will be just as enriching for themselves.

Let them make decisions and mistakes

Often, the mistakes we make are the best teachers. So don’t be afraid to allow your children the opportunity to make their own decisions, make mistakes, learn from them, and keep going.

Lead by example

Most times, children learn by what they see. If they have only ever watched your example of managing money responsibly, they will likely carry those habits as they grow. Although, the cause and effect are similar if they haven’t seen responsible money habits. So, if you want your children to be financially fit, you too should walk the walk.

Overall, there is no right way to teach your kids about money, just as long as you start. We’d love to help! Get started here.