Kids may think money grows on trees — that is, unless we make sure to teach them that it doesn’t. Money management is not an easy skill to instill in children, but it is possible. If you are looking for some tips for teaching kids about money, here are four tips that can help you.
Some parents give their kids an allowance – money that is automatically given each week unless the child broke a rule or got in trouble in school. There are also some parents who give money when kids complete their chores. Dave Ramsey explains that chores are an excellent way to teach kids basic money management skills, so consider attaching a dollar amount to chores to motivate your children.
You can teach kids about money by having a garage sale – often a lot of hassle for little money — or selling items online. Going to the trouble of selling used, unwanted items shows your children that it takes some work to make money. Selling your items also shows how quickly the value depreciates on many items. Ebay, Craigslist and even donating your items and waiting or a tax refund are all ways to make money with purging items that no longer bring you joy.
When you give your kids an allowance, it helps them learn to handle money. Some people choose to make their kids save a portion of the money in a savings account. They child is able to spend the rest of the money as they choose, or save it in their piggy bank for a large item they can afford down the road. The idea behind this is that it encourages self-control and discipline.
When you give kids money for chores, it can give the wrong message to monetize things like cleaning the room or other basic tasks. You can choose to assign values to other chores that extend above and beyond those to encourage kids to work together as valued members of the family. It’s difficult to know how to handle chores and allowance. Strive to teach your children that earning money takes hard work, persistence and innovation.
There are many ways you can teach children about earning, saving and managing money. None are right and none are wrong – just figure out what works best for you and your family. Some things all parents can do is to lead by example with your own spending and saving, and teach your children contentment.
Category: Family Finances
Tags: money saving tips