Dealing with issues of kids and money is something to start teaching as early as possible. Today many teenagers and young children have little idea about how to handle money in a responsible manner. They have never been taught the meaning and use of money. Now they do not understand why it is so important to know about earning, spending, investing and saving the money that belongs to them. Parents are very influential in helping their kids learn to respect the role money plays in their lives.
Parents and other adults should all set an example about saving money and teach children to follow this example. Even younger children are capable of learning the basic skills and principles of financial responsibility. If parents emphasize responsible money handling early in their childrens lives it will help them be prepared to manage their resources later on.
Tips For Teaching Kids About Money
Combining kids and money activities can be a fun way to start the education process. When children begin to count and do simple math they are ready to hear about the importance of money. Parents can be consistent and use simple explanations in these lessons. When you incorporate simple and consistent ideas frequently into your childs life it will make it easier for them to remember what you teaching them.
Emphasize the importance of saving money, and teach better budgeting tips. Let your children know that handling and saving money is important and will greatly influence the quality of their life. Let your children ask you money related questions and answer them promptly and honestly.
If you give your kids allowance you should combine different coins and bills to show your child how much money you are giving to them. This way you can also point out to them what part of their allowance they can save or spend. Help them budget their money and plan a savings program that will let your child take a part of their allowance to use for toys, candy or special clothing that they may want.
Allowances for kids and money spending can start at home and in baby steps. Let your children work for their money and begin this in the home. Arrange a payment for different chores.
The amount may be a quarter or a dollar, whatever is affordable and reasonable for you and your family. When your child completes specific chores they are given the agreed upon amount of money. Working for money will make the money become more valuable to your child and they will be inclined to handle it more wisely.
A piggy bank is a great way to teach children to save money on their own. It is also a good idea to create a bank account for young children where they can deposit and withdraw their own money. Most children are delighted to keep track of their savings and they enjoy watching the interest be added to their account.
Parents can remind their children about the amount of their savings on a weekly or monthly basis to keep their interest and motivation high.
It is not a quick task to teach your kids about money and how to be financially responsible, but kids and money can go together with some thoughtful planning. Parents should be patient and use short lessons to instill these valuable ideas. If a parent remains consistent and thoughtful as they introduce their child to the concept of money they will find that the children learn the principles easily.