5 Tips To Teach Children About Money
5 Tips to Teach Children about Money to Ensure a Profitable Future
Most parents want their children to be more successful than they are. The best start parents can give their children to secure future financial success is to teach children about money early in life.
Parents have the benefit of spending and saving experience that they can pass on to their children, hopefully reducing the learning curve their children would have to go through.
While money does not buy happiness, it does buy options. Giving children options often opens up new and creative ways to think and act.
The first step to begin to teach children about money is to make them comfortable with money. Too often children hear negative associations with lack of money, such as; parents worrying about bills or wanting something but not knowing how to pay for it, etc. They need to know that money is fun and not all lack and stress.
Here are 5 easy steps to teach children about money:
1. Teaching children to count is a fun milestone. Begin using coins and bills as tools to count with. Teaching addition and subtraction with money makes learning easy and interactive for children.
2. Having children make their own money is important. Even small children can earn money by picking up sticks or helping out with the laundry. Set strict guidelines as to how you expect the job or chores to be done and in a certain timeframe. In doing this, you are teaching your children the importance of quality of their work.
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Do not be afraid to give bonuses for above and beyond work so children know to always strive for more and to realize that they can truly make more money in their current situation.
3. Consider teaching children about earning interest. With the money they make from helping you, give them interest on whatever they are saving and not spending. This teaches children the value of saving and smart ways to increase their money.
4. Have children understand financial goal setting. Teach children about money using long term goals and short term rewards. Most children want the latest and greatest electronic, which would be a short term reward. Have them find out the price of their item and how to divide up the money they make.
Sit down with your children and figure out a plan for how much money they should set aside for their long term goal and how much they should devote to their short term reward. Also help them calculate how long it would take to achieve their reward and goal.
Make a goal and reward chart and put this up in your child’s room so they can daily see their goals and progress. Seeing a chart helps to keep them focused.
5. Teach children about healthy values concerning money. Too often movies depict rich people as bad people. The reality is that people make poor choices whether they are rich or poor. It is important for your
children to know that good deeds can be done with having an abundance of money. Help children figure out how they will also use a portion of their money to help others.
Educating and empowering when you teach children about money is a very important step to ensuring their strong financial future.
We realize that there is no “one size fits all” and we would really like to know what works for you. Go ahead and comment below on the ways you use to help teach children about money.
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7 responses to “5 Tips To Teach Children About Money”
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Tell them to save as kids. So they can learn how to invest when they turn into adults. It’s a good early headstart for them
I do agree. Children needs to be taught about money since the early age so that they can understand the value of money in the future. Even this way can make children become more responsible of what they spend.
I also think that the household income should not be kept a secret from children or considered a taboo subject. Children should understand the reality of what a certain income can afford in order to understand the concept of ‘living within your means’. As a child, my family never discussed our household income. As a result, I ventured out into the world totally ignorant of the laws of economy. I learned quickly the hard way.
Thanks for your comment. One has to be careful about divulging the family income to young children. Sometimes without realizing it, they are telling their friends the amount of money the parents earn, & it could come back to bite you. There are ways, however, of explaining what the family can afford to buy without giving them exact numbers. As they get older, more information can be shared, and they could also be included in the financial discussions.
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I love this post. My boys are 12 and 11 years old and this post gives some great ideas to implement with my children. Teaching your kids how to manage money when their young is a key to getting them on the right path for their future.