It is really never too early to start teaching your children about money. And the sooner you begin teaching your children about money the better chance they will grow up to have a well-rounded and responsible appreciation of the uses and value of money. Some parents may not begin to teach children about managing money at an early age because they simply don’t understand where or how to begin.
In the very beginning when children are very young money education can begin simply by teaching them to identify various coins. You can then reinforce what money is used for by taking your children shopping even at an early age and pointing out what is going on.
As children get a little older and into elementary school, this might be a good time to start providing a weekly allowance for each child. It really doesn’t matter how much this allowance is. The child should be taught about what would be appropriate uses of this money as well as the consequences of spending too carelessly. This is also a good time to begin to teach your children about the importance of regularly giving whether it be to a local church or charitable organization. If there is a particular item that your child wishes to purchase that is a perfect opportunity to teach them how many times they will need to receive an allowance in order to save enough for this purchase.
Another way you can begin to teach your children the value of managing money carefully is to take them with you on trips to the grocery store. Lead them through the process of comparing various brands of the same product in order to determine what would be the best value.
Elementary children can also learn a lot about money if they are encouraged to seek out ways to earn money by helping with chores around the house.
As children get older and into their teenage years, is a good idea to continue to give allowances but these allowances should be tied to household task and other obligations for which they are required to do.
Some additional suggestions for money education in the late teenage years include: allowing children to do the family grocery shopping, involving them in planning a budget for an upcoming trip, and helping them complete their tax returns if they’re employed. For older teens, it can also be a helpful learning experience to help them secure a small installment loan. This will teach them to learn to budget for regular financial obligations as well as build their credit.
Take the time to teach your children about the proper management of money and they will be much better prepared to be financially responsible adults.
Note: This content was curated from a third party.