5 Simple Ways Grandparents Can Raise Financially Savvy Grandkids

Grandparents love their grandkids, and they share a special bond that can even make their parents jealous. Grandkids listen to their grandparents as they offer judgement-free advice. This opens up a window for grandparents to educate their grandkids about money. 

Having the right financial skills can act as an arsenal for children. As traditional schools don’t prioritise financial education, it is essential for family members to instil financial discipline.  

While the responsibility to impart financial lessons falls on the parents, grandparents can help to solidify these lessons by sharing their experiences with money. Instead of only sharing their success stories, grandparents can share their failures and mistakes and how they recovered. These experiences will encourage kids to take risks and learn from their mistakes.  

Here are some lessons that you can teach your grandkids to make them financially responsible adults.  

Delay Gratification (Ages 3-8)

In the current scenario, learning to delay pleasure has become an essential life skill. Inculcating delayed gratification may not be easy, but it is crucial to be a financially responsible adult.     

As a grandparent, you may get swayed by their innocent looks or pleading eyes. However, instead of giving them what they want, you could provide them with a piggy bank to save money? You may tell them the price of the item and help them calculate the amount saved.  

Hard Work Is Essential (Ages 8-14)

Hard work has its place, and your grandkids need to understand the importance of hard work. Depending on your grandkid’s age, you can assign them chores such as chopping vegetables, cleaning the kitchen or garage and pay them. This will help your grandkids to understand the relation between hard work and reward.  

Saving Money (Ages 10+)

The earlier your grandkids save, the better it is. Please encourage them to save money from their allowances or cash received from other family members on birthdays and other occasions. To nudge your grandkids to save money, you can give the example of an expensive purchase that they have been eyeing for quite some time.   

If you want to save money for the higher education of your grandkids, you can invest in mutual funds in the name of your grandchildren. Their parents need to sign the form and your grandkid should have a bank account to complete the process. 

Building An Entrepreneurial Mindset (Ages 10+)

Your grandkids can benefit in different segments of their life by cultivating an entrepreneurial mindset. You can give them the confidence to take up projects without worrying too much about the result. Inspire them to work on their idea and to keep adjusting as they move forward. Help your grandkids with money but don’t micromanage their work. 

Make a revenue-sharing deal or ask them to reimburse your money. The partnership will help your grandkids understand an organisation’s basic working and make them more confident. 

Paying Yourself First (Ages 17+)

Adult life can be messy. As your grandkid becomes an adult, you can teach them about the importance of paying themselves first. If your grandkid is working part time along with their studies, encourage them to save at least 10% of their income. You can help them understand the importance of paying themselves first. It will become easy for them as adults to pay themselves first even when liabilities surround them.  

Conclusion: 

Most children are very comfortable around their grandparents. Hence, as a grandparent, you can help your grandkid cultivate several good money habits in a very non-intimidating manner.