Teaching Your Kids About Money
Children arent born with an understanding of how money works; all parents learn that one quickly. A young child sees the things they want or need just appear from Mommy and Daddy. The fact that Mommy or Daddy gave money to the sales clerk means nothing to them. So how do you teach your kids about money?
You have to consider your childs age first. My daughter, for example, is three, going on four. Right now she knows the names of the various coins, but the difference in value between a dollar and a quarter, for example, is completely unclear to her.
To help her learn, we are letting her spend just a little bit of money. We gave her a $3 budget to buy her baby brother a birthday present a couple months ago. She struggled quite a bit finding presents in her price range and had to settle for something other than what she had wanted to buy for him. Specifically, she wanted to buy a farm for him, but most of those we saw were in the $20 price range. She finally found a variety of small gifts that fit her budget. She was so delighted to be able to give the cashier the money we had given to her.
Now, obviously this taught her very little about the value of money. She didnt have to earn it, and she really didnt understand why some things cost too much. But it was a very early lesson in sticking to a budget.
You need to decide when you give your children money and why. Some parents prefer to give a regular allowance with no association with getting chores done, etc. Others have a set rate given provided chores are done, while still others have a set rate per chore completed. Theres no right or wrong way, but you do need to be clear on when your kids get money. Dont forget to consider ways in which your kids may earn extra money.
Also consider making rules on how allowance may be spent. Many families have their kids put their allowance in multiple containers - one for immediate use, one short term savings, one long term savings, one for charity, or any combination of containers. Saving money is a habit many parents have trouble keeping, but it is a great one to teach your children.
By the same token, try to avoid teaching your kids to rely too much on credit. Some parents will let their kids borrow money against their next allowance. Now, managing credit well is a vital skill, but it is one best saved for after kids have managed to learn how to save money well, in my opinion. On special family trips it may be appropriate to loan your child some money, but if it something that can easily be bought later it is far better that they learn the value of saving toward a goal.
But there are more ways to teach your kids about money than giving them an allowance. Talk to them about what things cost when you go to the grocery store. Go over what each item costs, and if buying by weight, explain how buying more means you pay more, and that you only want to buy what will actually be used. This is also a good time to teach them about quality, and how to look for the best produce. Children are very proud when they find food that is worth buying and may have a good eye for things once they have been taught what to look out for.
Dont forget to teach them about coupons! Once your child is old enough to not throw them around, he or she may be good at keeping track of your coupons and making sure you remember to use them.
As your kids get older you should help them to build a more realistic picture of what things cost. Have them write the checks out for your bills - or, if you have automatic payments as many people do nowadays, go over your statements from your various bills so that they can see how much everything is really costing you.
Managing money well is a vital life skill and one that children can begin to learn at a very young age. You dont have to have your finances in good order before setting a good example for your child. In fact, teaching good money habits to your child might just help you to take a look at how you are spending your money and help you to improve your habits. This is one habit that your kids will be grateful to have later!
Stephanie Foster's kids many not have mastered money yet, but she loves helping her kids learn about money. You can learn more parenting tactics at http://www.homewiththekids.com/family/.100 Construction Financing Loan
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You have to consider your childs age first. My daughter, for example, is three, going on four. Right now she knows the names of the various coins, but the difference in value between a dollar and a quarter, for example, is completely unclear to her.
To help her learn, we are letting her spend just a little bit of money. We gave her a $3 budget to buy her baby brother a birthday present a couple months ago. She struggled quite a bit finding presents in her price range and had to settle for something other than what she had wanted to buy for him. Specifically, she wanted to buy a farm for him, but most of those we saw were in the $20 price range. She finally found a variety of small gifts that fit her budget. She was so delighted to be able to give the cashier the money we had given to her.
Now, obviously this taught her very little about the value of money. She didnt have to earn it, and she really didnt understand why some things cost too much. But it was a very early lesson in sticking to a budget.
You need to decide when you give your children money and why. Some parents prefer to give a regular allowance with no association with getting chores done, etc. Others have a set rate given provided chores are done, while still others have a set rate per chore completed. Theres no right or wrong way, but you do need to be clear on when your kids get money. Dont forget to consider ways in which your kids may earn extra money.
Also consider making rules on how allowance may be spent. Many families have their kids put their allowance in multiple containers - one for immediate use, one short term savings, one long term savings, one for charity, or any combination of containers. Saving money is a habit many parents have trouble keeping, but it is a great one to teach your children.
By the same token, try to avoid teaching your kids to rely too much on credit. Some parents will let their kids borrow money against their next allowance. Now, managing credit well is a vital skill, but it is one best saved for after kids have managed to learn how to save money well, in my opinion. On special family trips it may be appropriate to loan your child some money, but if it something that can easily be bought later it is far better that they learn the value of saving toward a goal.
But there are more ways to teach your kids about money than giving them an allowance. Talk to them about what things cost when you go to the grocery store. Go over what each item costs, and if buying by weight, explain how buying more means you pay more, and that you only want to buy what will actually be used. This is also a good time to teach them about quality, and how to look for the best produce. Children are very proud when they find food that is worth buying and may have a good eye for things once they have been taught what to look out for.
Dont forget to teach them about coupons! Once your child is old enough to not throw them around, he or she may be good at keeping track of your coupons and making sure you remember to use them.
As your kids get older you should help them to build a more realistic picture of what things cost. Have them write the checks out for your bills - or, if you have automatic payments as many people do nowadays, go over your statements from your various bills so that they can see how much everything is really costing you.
Managing money well is a vital life skill and one that children can begin to learn at a very young age. You dont have to have your finances in good order before setting a good example for your child. In fact, teaching good money habits to your child might just help you to take a look at how you are spending your money and help you to improve your habits. This is one habit that your kids will be grateful to have later!
Stephanie Foster's kids many not have mastered money yet, but she loves helping her kids learn about money. You can learn more parenting tactics at http://www.homewiththekids.com/family/.100 Construction Financing Loan
Niacin Toxicity
New World Mortgage
Tea Light Candle Holders
1 16 Farm Scale Toy
Baby Infant
007 Starr
06 Soccer Tour World
Equity Home Loan Rate Refinance
Candy Machine Store Vending
Cookie Exchange Party Invitation
Career Education Health
Orlando Aviation
Kraft Food Interactive Kitchen
1 800 Bedding Mattress
Deep Sea Fishing Puerto Vallarta
Bead Crystal Necklace Swarovski
30 Gb Ipod Used
100 Cascade Central Hike Hike Hundred In One Oregon
11 Cafe Del Mar
Free Dating Personals Service
Crystal
Community Credit Union Veridian
Real41
City Of Paso Robles
10 Boot Man Western
Electric Dirt Bikes
80g Apple Ipod
360 Xbox Headset Review X
Lori Bailey
Malignant Pleural Mesotheloma Lawyers Annapolis
Cave Story
Used Record And Cd Store
Chocolate
Gift And Gift Basket Baby Shower Cake
Museum Funding
1 Bank Convenience First
Yahoo Wallet Home Page
Flower Shaped Fruit Basket
Grapefruit Diet Lyric
Taliban Singles Online
Case E715
Driving Directions Maps Trip Planner Us
Diet Pill Bontril
Disc Golf Marshall Street
1 First Bank Of Puerto Rico
Real2
E Blaster
16075 Fitness Health Spa
Carpet Cleaners Hoover Steam
Circuit Breaker Blue Sea Systems
Albertsons Drug Savon Store
18 And Older Night Club
Jesus
07 Gmc Truck
100 100 America America Best Best Place Place Retire Retire
Kik Step
Chocolate Price Verizon
Used Aircraft Engines
Carpet Commercial Milliken
Gas
Parsons Realty
Recipes
City Of Syracuse
How To Become A Wedding Planner
Expert Sports Store
Karaoke Program For Pc
Liver Diseases
Rehab Facilities Nyc
Lake Zurich Illinois
Coke Diet Instructions Mentos Rocket
Word Search Puzzles Free
Santa Fe Condominium
Beach Ca Long Rental Vacation
Anxiety Attack Cure Panic
Footwear
001 110 Connaught Delhi New Place
Indiana Department Of Financial Institution
Incharge Debt Solutions
Ohio Accident Lawyer
Hobby Toys
Flower Gift Pakistan Send
Dating Online Personal Single Training
0 Odor Pet
Beach Huntington Rental Vacation
Chanel Duffle Bag
Coffee
Map Of Epcot
Wikipedia 2008 Presidential Election
Sea
10 8 Dress Girl Little Size
By Dozen Glasses Louis Sun Vuitton
Canada Catalog R Toy Us
Samsung Cell Phone Battery
Ice Cream Bbc T Shirt
Chris Vrenna
Real6
Timeshare
Beach Christian Church God Jesus
1 2007 Bank Holiday January
Dress
Prudential Financial Services Retirement
007 Nightfire Cheats
House Gutters
Silver Earring Jacket
Chocolate
Hockey Greeting Card
Vending
Cheapest Flight To Cyprus
Trailer Used Vending
Time Share Promotion
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