If you're a parent, you know somewhere along the line, you will have to show your children how to handle money. This can be a difficult task since many of us haven't mastered our own finances. This is a very important lesson that is so far reaching to future success that transcends beyond a simple bank book and cash. Take this seriously and try doing your best. If you're not sure where to start, I have some helpful tips to get you on your way. I hope you find them useful.
Money Management Tips For Kids:
- Time to start – it's a good idea to begin money training at 3 to 4 years of age and should continue into their tween years.
- Can't have everything – let your children know that they can't have everything they want. Something has to give. Only what you can afford. I'm sure you've run into the situation in a toy store and they want everything they see. Perhaps you say one item under $10 or you say no toy because we don't have the money. Not today.
- Save money as a group – Make saving money a family affair. Consider setting up a college fund. Explain how the account works. This way your children get an idea of how to save for an event that is in the distant future. As college time draws near, they will appreciate what you have done.
- Kids earning money – I'm sure you remember the lemonade stand or perhaps some of you had a paper route. I had the paper route, really nice. I made a lot of money, it was very lucrative, however my parents started to charge me rent. They set up a savings account in my name and made the deposits for me. That way I had savings for later. Perhaps your kids have' some hobby involving making toys or jewelry or perhaps collecting things. They could learn how to sell them online.
- Confidence – early money training will aid in providing confidence in your kid's ability to manage money. This is very important for their development. Make sure you spend as much time with you daughters as you do with your sons. Both need equal training.
- Learning about money takes time – have your children present when you pay bills otherwise they just might think bills pay themselves. If you have accounts on line, show your kids how to read the bill and what has to be done to pay it.
- Importance of sharing – children need to learn how to appreciate what they have but also important is the ability to share what they have with others. Consider having your kids express their gratitude during meal time perhaps not unlike a prayer.