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How do you teach your kids proper money management ?

 
gwen20

Asked by gwen20 at 3:53 AM on Feb. 21, 2011 in General Parenting

Level 35 (71,622 Credits)
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Answers (4)
  • There is many differnt way to do so. What we do is we give the kids allowance and require them to put half in their saving account. They even enjoy it more than we do. Shows them a sense of responsibility. My girls (3 bio and 2 additional) take money management class in school. About 4 or 5 months ago they all got into trouble and I had to bring out the big guns. Everyone was required to pay a bill with their money, not the saving money, talk about unhappy campers but they learned a lesson and in the end it worked out great.
    scmedicalasst

    Answer by scmedicalasst at 4:08 AM on Feb. 21, 2011

  • My DH and I have been "teaching" our son about money since he was old enough to hold it and give it to someone (buy stuff). We make him buy his "donuts", and what not. We also give him coins to put into a money bank, and we give him at least some of the money to give to the offering at church. He's still too young to know where the money comes from or why money is important (he'll be 2 next month), but he already understands that you can't get something out of a store without buying it, and you have to give something back from what you have. Both are important lessons for his age, I think. As for the money bank, that's a relatively new one, he just understands that you put money in, and it can be taken out. He loves putting the coins in over and over again.
    ladymomtraveler

    Answer by ladymomtraveler at 4:49 AM on Feb. 21, 2011

  • My 9 and 11 yrs old have had a savings account at the credit union since they were 6. Half of their allowance goes in there and they aren't allowed to take it out (our rule, not the credit unions). They love getting their statements and seeing how much interest they are earning on their money. I also share with them my money market account statements and go over what the different numbers mean. There are things they want and they've learned that if they use all their money on a toy, I'm not giving them more so they have to decide which things are more important.
    missanc

    Answer by missanc at 8:21 AM on Feb. 21, 2011

  • First by example. Sharing with your kids your financial information (as much as you feel comfortable) and showing them how to make smart financial choices will help them learn. As well, having them work for an allowence and teaching them how to save and purchase in a smart manner. Those are the best ways. Don't just give money out without them having to earn it, because they're never going to get "free" money in the "real world". They're always going to have to work for it, so it's important for them to know that now. Even as young as toddler age, so that they're constantly learning that information as they get older.

    Have them set up a bank account and have them save a certain amount of money each "paycheck". Then they can spend the rest if they so choose or save it up.
    JazzlikeMraz

    Answer by JazzlikeMraz at 9:51 AM on Feb. 21, 2011