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Teach them the value of money
- The moment children can count they can learn about money. They can count coins and put them in a piggy bank.
- Money is earned by working. So give kids the opportunity to earn money by doing chores and getting paid an allowance. By the age of 15 they should be volunteering or interning so that by the time they are 15 they can have an idea of what a job is like and will have experience to get a job they will really enjoy.
- Allowances help children learn to make decisions, think about alternatives and consequences and gain a well-balanced perspective about money.
- Come up with fun money earning opportunities like Wash the car and earn $10 more this week.
- Lead by example. Involve your kids in family budgeting and set an example of how to follow a budget and control spending. Keeping budget restrictions and hard times a secret does not help anything and can instead be a great time to teach children about saving.
- Everytime you pay for something whether it be cash, check or charge is an opportunity to teach your children about the differences of each.
- Play games with your children that use money like Monopoly and Cash Flow for Kids by www.richkidsmartkid.com ;
- Take them to the bank to open their own bank account so that they can put their money in a savings account and begin to earn interest.
- Teach children the differences between wants and needs.
- Savings accounts encourage children to save, invest, and give.
- Next time a child says they “want” something tell them they have their own money and if they really want it they can buy it themselves.
- The account also allows children to save for things they want to spend their money on.
- Help them set goals to save up for things that they want or need in the future.
- As children get older give them incentive for saving up for things like a car when the turn 16.
Is it worth your time and effort to help your children learn about money? As Benjamin Franklin once said, “An investment in knowledge always pays the best interest.” Answering your children’s questions honestly and in terms they’ll understand can help them begin life on sound financial footing.