Important Money Management Lessons for Kids
Parents are constantly teaching their children about money management and also financial education for kids whether they’re aware of it or not. Kids pick up on whether you plan your shopping, put money into savings, or spend irresponsibly. At its most fundamental, teaching money management to children is about setting a good example. 1. Start With Physical Currency, Then Teach About Banks With younger children, physical currency is a great, tangible way to learn about money. Whether you teach them to put their coins in a piggy bank or keep paper money in designated envelopes, handling money demonstrates the basics of money management. As kids get older, around ages 9 to 12, they are capable of learning about savings accounts and why they’re important. 2.Teach Kids About Saving, Sharing, and Spending with Allowance Whether allowances are tied to chores is an individual decision for each family. One method that works well is to give kids a flat allowance in exchange for the basics expected of them (like making their beds and feeding household pets), and giving them the opportunity to earn more with bigger chores (like mowing the lawn or handling the family laundry). 3.Help Kids Learn to Comparison Shop Children in elementary school can understand the basics of comparison shopping. Let kids see you making a shopping list and looking at sales circulars in order to note where certain items cost less. Take your child grocery shopping with you and show how you compare brands to make your money buy more. 4. Encourage Older Kids to Earn Extra Money Middle school-age kids may not be eligible to get a traditional job, but that doesn’t mean they don’t have opportunities to earn extra money. Here are some ways kids can earn a little extra: •Collecting recyclables and taking them to the recycling plant. •Organizing and setting up a family garage sale. •Doing yard work in summer, and snow shoveling in winter for neighbors. 5.Teach Children the Importance of Giving While earning, saving, and spending are important, so is helping out those less fortunate. Explain to your kids why you give money to charity and encourage them to give some of their allowance or other earnings to the less fortunate. 6.Teach Kids About Credit in an Age-Appropriate Way While your kindergarten student isn’t ready to learn about credit cards and loans, you can still teach her the basics of “credit” with games like “the marshmallow test” that show the value of delayed gratification.
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AuthorHi! I am Tim Connolly and I am providing help to parents to bring up their children in a healthy environment. I am working in this profession from last 5 years, if you have any query regarding this please contact me. Archives
June 2021
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