Unfortunately today, the significance of teaching children about money is often forgotten. The truth is it is incredibly important to teach your kids the fundamentals of money as soon as possible, especially in this day and age.
If you are wondering how to teach your kids about money, the following tips will make it easier for you.
Get Them a Piggy Bank
If your children do not already have piggy banks, it is probably a good idea to get one for each of them. This is because a piggy bank is one of the best ways to introduce kids to money at an early age.
Start with coins and teach them that, if they keep adding money to their bank, their money will grow. Also, by encouraging your kids to save their money instead of spend it, they will better understand the concept of savings accounts.
Make a List of Chores & Give Them an Allowance
By giving your kids a weekly allowance if and only if they complete certain household chores, they will quickly learn the importance of working for their money. This is one of the most valuable fundamentals of money for kids to understand.
If you simply hand money over to your kids without having them work for it, they will begin to think that is how life works. Chores and an allowance will also teach your kids the importance of responsibility. If their chores are not complete at the end of the week, they do not receive their allowance.
Set a Good Example
When your kids are old enough to understand, try to let them in on what you are doing when it comes to money. If you are at the grocery store paying by check, let them know what a check is.
If they realize that a check represents actual money and is not just a piece of paper, they will start to comprehend the importance of a checking account.
Explain to your kids what happens when you use your ATM card as well. Let them know where the money is coming from and that the ATM is not just a magical machine that dispenses cash.
Also, try not to become frustrated over money in front of your kids. This will only show them that money makes you angry. Although this can be very true, try to remain calm while you are around your kids.
There are many fun, educational games and toys that can teach your kids a great deal about money. Whether it is a board game such as Monopoly or a toy cash register, comprehension is much more likely if learning is made fun.
Have Them Set Goals
If there is something your child really wants, such as a new bike, have them set a goal for purchasing it. Teach them that if they save a certain amount of money each week, it will take them a certain amount of time to reach their goal.
Once they have enough money to purchase what they want, take them to the store and let them pay for it on their own. This will show them that goals can easily be reached if the proper steps are followed.
Teaching your kids about money is not always easy, but these helpful tips can certainly make it less stressful. The earlier your kids understand the basics of money, the more responsible they will be growing up.
If kids are responsible as they grow up, they have a greater chance of being responsible as an adult.
About The Author:
Guest post from Riley Finnigan. Riley writes for Creditscore.net.