5 Ways to Teach Your Kids About Money! How do/will you teach your kids about money?
5 Ways to Teach Your Kids About Money
As
someone who got her first credit card in college and maxed it within a
week and who spent a few of my younger (and slightly irresponsible)
years learning the art of balancing a budget without bouncing checks, teaching my children fiscal responsibility is extremely important to me. I want them to learn from an early age how to manage money, save, and not have to learn those lessons the hard way like I did.
So over the years, I've researched and grilled other parents for strategies on how to start money lessons early. Here are five simple ways I've found to teach kids what they need to know about money.
1. Give them an allowance
Decide on an amount, no matter how small, and make them earn it. Even the youngest toddlers can help pick up toys or do other small tasks that let them know they don't just get it for no reason.
2. Help them divide their money
Explain that money must cover all aspects of one's life -- both long- and short-term. I've heard of some families who give their kids multiple piggy banks to help it sink in. One for saving, one for spending, and one for sharing (giving to a church or charity).
3. Talk about money choices
When purchasing items in your everyday life, try to talk to your children about how money factors into your choices. For example, if they want one kind of yogurt, but another is on sale, explain to them that sometimes it makes sense to make small sacrifices for savings.
4. Teach them the difference between needs and wants
"Mommy needs a new dress" is probably not as true in many cases as "Mommy wants a new dress." It's okay to buy things we both want and need, but it's important to know (and show them) the difference, and know that needs must come before wants when you're on a budget.
5. Embrace mistakes
Tell them about money mistakes you've made (I have plenty to share) and let them make mistakes too. Use them all as teaching moments to discuss what could have been done differently and how to avoid such pitfalls in the future.
How do you teach your kids about money?
I am hoping to open her an account this summer at our credit union. They have a lot of teaching tools that they provide when a child opens an account, so I'm hoping it will help. I had a huge credit card problem in the past that I am currently trying to fix. She hates the old "save your money" line, but she gets it a lot lol
I'm going to start to try. He's ten and very impulsive with everything. But we're going to start asigning chores which he must do to get the allowance. My girlfriend also has a 10 year old simular to mine and takes what he is suppose to do and what he does and pays him for just what he does. He's learned.
Luckily my 4yo seems to have a natural understanding of money. I still work with her on things like making sure you pay for things at the store. For her 4th birthday she got $25 cash and the first thing she wanted to do was go to the bank and open an account. That was 6 months ago and she now has almost $100 in her account. All money that she has earned and saved herself.
Unfortunatley my boys never quite got all of the money lessons we tried to teach and now my 18yo is kicking himself for a few bad money choices. Nothing too major though, so that's good at least.
One thing I will do when my kids are old enough(3, 1, and newborn) is make them sit down with me each time I get paid and have to pay the bills. Show them what is left over. Also at the start of each month have them help me make a budget.
how do I learn to be patient?
- Cafe Kelly
on May. 1, 2012 at 3:40 PM