Admit it, some of us were way too old when we started really learning about money. We’ve got to fix that for our kids!  I’m Kalilah Reynolds and it’s time for another episode of Money Mondays Ja.

There’s been a lot of talk in recent years about creating generational wealth. Securing a great financial legacy for our children so that they don’t have to struggle after we’re gone. 

But while we’re all out here getting the bag, some of us are forgetting one of the most important parts of generational wealth: teaching our kids to manage money so that once they get the bag, they don’t fumble it.  In this episode, I’m gonna teach you some fun and easy ways to introduce finances to your children.

First thing’s first – it’s never too early to start teaching your children about money. Think about all the values your parents taught you as a child. You probably still remember them and apply them to your life now. It’s the same with money. The earlier they learn, the better. I actually have a video where I talked about all the financial lessons I learned from my parents. You can check that out up here.

My first tip, and this is great for younger kids, would be to get your child a piggy bank.

A piggy bank is one of the easiest ways to introduce saving to your children. And, they are super common too. I mean, most of us had one growing up. Whether it was shaped like an actual pig or was a Pringles tin with a hole cut in the cover. 

Younger kids, especially, will love this because they get to drop the coins in through the slot. You could also turn saving with a piggy bank into a lesson and a game. First, start by teaching your child what each coin looks like, a $5, $10 and a $20. Then, eventually, you can start asking them to drop a specific coin into their piggy bank whenever they see one.

And now-a-days there are some more high-tech piggy banks that are shaped more like a bank vault than a pig. They come with security codes and your little ones can watch as the money gets dragged in. However it’s shaped, your child will still be learning how to save. And, if they should ever want a sweetie or something to drink they can proudly say, they have their own money to buy it. 

This next tip is perfect now that kids are returning to physical classrooms. Give your children their lunch money for the whole week at the start of the week.  I know, I know, it sounds risky. I would definitely recommend this mostly for older children, at least 8 years and up, but it is a great way to teach them to be responsible with their money, and it also lets them feel independent.

They’ll have to learn how to budget throughout the week to ensure that the money lasts. Have a discussion with them beforehand and explain that if they spend it all before the week is over, then that’s it. It’s also a good way to learn about saving. If there’s something that they really want to buy, they can budget lunch and bus fare, then save the rest towards that goal. 

Another option is to pay your children for completing chores or other tasks. It might not seem fair because we had to do chores for free but we’re trying to raise financially literate kids sooo. 

By paying them for chores, you’re introducing them to the working world, where they will have to provide good work to make money. They don’t have to be paid any great sums of money, just enough to keep them motivated. I mean it’s a win-win, your child will have some pocket money and you’ll have a clean house. You can take it up a notch by introducing taxes. For instance, if you’re paying your child JMD$100 to sweep up, then hold on to $20 and give them the remainder. It’ll be their first introduction to taxes. You can continue saving the “taxes” and give them as a “refund” at the end of the year or put it in their savings.

You might also want to start having your children watch as you pay the bills. Explain to them how much goes towards each bill and how much money the family has left for the month. The idea here is to show them the reality of bills and why it’s important to pay them on time. It may also make them more understanding if one month they can’t get a new toy or game.

So those are some of the basics that you may have heard before, but we also have to start introducing concepts about money early on – how money works, ways that it can be earned and used to create even more money.  There are three key terms that you should teach them very early: entrepreneurship, investing and assets!

And it’s easier than you think to get them started. You can identify something that your child loves and show interest in and start a business for them centred on that. For example, my daughter Nirisi is three and loves to tell stories, so we started a YouTube channel for her to tell her stories. There’s also an American company called Nails by RyderK that sells ‘mommy and me’ nail polish. It’s owned by four-year-old Ryder  K and run by her mom Cheyenne. Not to mention Ryan from Ryan’s World on YouTube, who is consistently one of the platform’s highest earners and he’s not even 10 yet. 

If you’re a business owner and your children are a bit older, you can start showing them the behind the scenes of your business and ask for their input and help. My daughter Alexa designed our lets get this money sign and she used to help out with logistics and editing before she started college. The idea is to introduce them to the idea as early as possible. 

It’s the same with investing and having assets. Savings bonds are usually considered a safe, straightforward investment that will earn interest over time. Plus, minors can hold bonds in their name, which makes them a perfect gift for kids. You have to be a certain age before you can open an investment account so you can’t get one for really young children. However, you can make investments in companies that will benefit your children. As for assets like real estate, etc, once there aren’t any outstanding payments, like mortgages and loans, then you can add your child’s name to the title. This allows them to have a headstart in the market when the time comes. 

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As always remember I am not a licensed financial advisor and you should consult a licensed financial advisor, who knows your specific situation, before you make any investment decision.   

Creating generational wealth is a two part process; working hard and smart and education. We have to teach our children all the tips and tricks we learned so that they can continue building wealth.