Early financial education isn’t just about teaching kids the value of a dollar (or a shiny coin, as the case may be). It’s about instilling in them a sense of empowerment and independence that will serve them well throughout their lives. By learning to save and spend wisely from a young age, children develop essential life skills that will shape their financial future. Encourage them to participate in simple budgeting exercises, such as allocating allowance money for different purposes or creating a savings jar for special goals.
Encourage children to explore the world around them, seeking out opportunities to earn money through creativity, initiative, and hard work. Whether it’s setting up a lemonade stand, offering to help with household chores, or starting a small business of their own, let children unleash their imagination and ingenuity as they discover the joys of financial independence.
Help your tiny tots understand the importance of setting aside a portion of their income or allowance for the rainy days that may lie ahead. Whether it’s starting with a small jar or piggy bank or opening a dedicated savings account, let children experience the joy of building their own financial fortress.
Help children distinguish between needs (essential items for survival or well-being) and wants (desirable but non-essential items or experiences). Encourage them to prioritize spending on needs first before allocating money for wants.
Introduce children to basic banking concepts, such as savings accounts, interest, and deposits. Teach them how to deposit money into a bank account and explain the benefits of saving money in a bank, such as earning interest and keeping money safe.
Think of an RESP like a magical piggy bank that’s specifically designed to help you save for your child’s future education. It’s a special savings account that allows you to invest money for your child’s education expenses, like tuition, books, and even room and board.
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