In the midst of rebuilding an economically distressed country, it is never too soon to teach your children about managing their money. Financial lessons can be learned at any age, and parents who are proactive in teaching kids about money can worry a little less when they become more independent. Depending how old your kids are, there is a fun way for every age to get started logging, balancing and saving.
Five Fun Ways To Teach Your Kids Money Management
- “Hire” Them
The first step to teaching kids smart money management is to teach them the value of money. Start a weekly allowance system in your home, in exchange for suitable chores. Try something like one dollar for each year of age, per child, or decide on what works for your family. Once your children are responsible for their own money, it will be much easier teach them the effects of spending and tracking.
- Piggy Banks
A tried and true way of helping children save up their own money is buying them their very own piggy bank. Explain to them that they can put their money that they wish to save into it, but cannot retrieve it until they are ready to break their pretty little bedside bank. It is an adorable and timeless way to teach your children about the important of savings. There are many different versions of this that would work just as well, and you can find kids toys that resemble vaults or cash registers.
- Basic Accounting
When your children are finally old enough to write on their own, encourage them to start their own banking ledger. Make a simple chart for them on a piece of paper, and attach it to a clipboard with a pen. Show them where to write their starting balance, their purchases, and their ending balance. Teaching your children good accounting skills early on will help them with frivolous spending in the future.
- Teach Them Cost Opportunity
Show your children where their money is going by allowing them to keep their spending money in a clear jar or bag. If they decide to take out a few dollars to buy a silly plastic toy, watch how disappointed they will be when they see the money missing from their jar in exchange for an already broken toy. It may hinder them from more reckless spending even at such a young age.
- Set A Good Example
On top of teaching your children their own financial awareness, make sure that you are setting a good example with spending at home. If your children watch you frivolously spend money and not follow any of your own advice, they are less likely to follow it themselves. Never fight about money with your spouse in front of your children, for it will shine a negative light on the practice of good money management.
As your children get older, you can teach them more important lessons such as debt, credit consolidation, bankruptcy, stocks, retirement and more. It may be beneficial for you as a parent to seek professional assistance like credit counseling if you are dealing the serious financial issues, Leading by example is one of the best ways for your children to learn.
How do you teach your kids money management skills?
Guest post written by Anita. Anita is a freelance writer from Denver, CO. She mostly writes about home and family, finance, and business. When she isn’t writing, she enjoys spending time with her family and reading a good book.
Informational credit to Paddon & Yorke Inc.
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