Thursday 31 October 2013

Five Tips For Teaching Your Kids The Value of a Dollar

Learning to manage a budget is one of the most important skills that children can learn to prepare themselves for life as adults. Good money management can be taught early on in life; saving children years of financial troubles once they reach adulthood.

Be a Positive Role Model

Show your child how you make your family’s budget and how you save money. Bring them to the bank and involve them in making withdrawals and deposits. Being present while you do everyday financial tasks, such as when you order a new box of checks, provides your child a base understanding of finance. While you go through your routine, make sure you explain it in language that your child can understand.

Encourage Participation

Weekly grocery shopping trips are a great place to start teaching your children about budgeting money. Make a weekly shopping list together and encourage your child to find coupons for items you purchase regularly or search weekly flyers for the best deals.

Make Learning Fun

Learning about personal finance doesn’t have to be boring. Games like Monopoly can teach children the value of money while they play.

Provide an Allowance

Whether or not your child’s weekly allowance is dependent on chores they do throughout the week is up to you, but an allowance is the best way to teach children how to manage income. Start with a small amount as soon as your child is old enough to understand that money is exchanged for goods and services that they want.

Encourage your child to budget their money properly. Some of their allowance should go towards small weekly purchases, such as buying a new toy or seeing a movie. The rest should go in a savings account or piggy bank so that they may save up for larger purchases in the future. Making sure your children understand the difference between immediate gratification and having a long-term savings goal is extremely important.

Establish Limits

While it is important for children to be able to have a little fun with their money, don’t bail them out if they spend too quickly. This will allow them to learn that there are consequences to their actions.

Building a foundation of personal finance knowledge is just as important for children as learning English or math in school. Like grammar and spelling, children can use the information they learn about money well into their adult lives.

Do you have have any questions or suggestions? Write in comment section.
Like Us On Facebook

favourite category

test section describtion

Whatsapp Button works on Mobile Device only