Summer is almost over, and families everywhere are navigating what school is going to look like for their kids this fall. Whether they’re going back to the classroom or learning from home, many parents are becoming teachers in addition to their normal parenting duties.
If you’re providing for your family abroad, you may not get to be a part of the day-to-day curriculum or homework sessions. But you have the unique opportunity to teach one of the most important lessons of all: financial wellness and responsibility. Especially if you’re sending money to help your family prepare for the school year!
As the global economy absorbs the impact of COVID-19, understanding how to make smart financial choices is more important than ever – especially for the generation that’s going to inherit it. After all, most of us don’t remember the elements of the periodic table, but we can help kids understand some basic money lessons like how to save, budget, and prepare for the future.
4 important financial lessons to teach to your kids
If you’re sending money to your family across the world, here are some simple ideas to help kids understand the basics — along with finishing up some of their back-to-learning needs.
1. If you’re paying for school supplies, help your kids learn how to budget
No matter how much you can send, you can teach your kids how to plan for costs and budget accordingly. For example, if they want to spend all their money on a backpack, ask them how they will afford pens, pencils, and paper. If you have older kids, you can make the budgeting more complex. By taking the time to calculate costs and make smart purchases, you can help them understand that money isn’t infinite.
2. Help them understand financial priorities, the difference between wants and needs
Learning the difference between wants and needs can be a lifelong journey. By helping younger kids understand that food, shelter, health, and other basic necessities should always come first when it comes to financial priorities, you can set them up for success as early as possible. It can be as simple as calling and asking, “What do you want to spend money on for school, and what should you spend money on?”
3. Teach them how to set aside and save money if you have the means
If you’re in a position where you can send a little extra for your kids to save, try to. The act of setting aside money instead of spending it is easier said than done. Teaching children how to do this early can help them develop habits that allow them to save for big purchases or emergencies in the future.
4. Most importantly, show how grateful you are for what you have
Financial situations can change in an instant. Make sure to talk about what’s most important with those you love. This can have a lasting impact on your kids’ worldview and happiness, especially in times when money is tight.
If you’re teaching your kids how to save, budget, and understand money from abroad, we would love to learn how you do it – feel free to comment below or on social media. And if you’re ready to send money now, the Ria Money Transfer app is available in the US, Canada, and in select countries in Europe – download it today!