Teaching Your Kids About Money
Teaching your kids about money is important. But how do you do that? Kids need tangible ways to understand abstract concepts (like money). They learn by doing. So start by giving your child three clear jars to put their money in. One for spending, one for saving and one for giving. Each time your child gets money (via allowance, completing a task or whatever else), tell them to put the money in the jars. If they run out of money, don’t cave and buy them that new toy (even if they beg). Tell them that they have to save up for it again.
Teaching your kids about money
You could also give them money for their birthday, rather than a gift. This will allow them to see for themselves what things truly cost and make responsible financial decisions.
Also, keep in mind that it’s fine to give your child an allowance for certain chores. But don’t give them money for all chores, or they’ll always expect to be paid for helping out around the house (even after they start working).
You could also play a little game. So, for example, if you have teenagers, send them to the mall and give them each a small amount of money, say $3. Tell them to come back in one hour with the best thing they can find. Then you and your family vote on who came up with the best item.
Lastly, teach by example. If you’re always spending beyond your means, your kids will pick up on that and likely do the same one day. If you’re responsible with money and set a budget, then your kids will too.
