It is never too early to start teaching your kids about money. The sooner they learn this lesson the better, really. You’ll avoid all those moments when your child screams for something you can’t get. Teach your child that money is earned, and as such it should be respected. Here’s how to do it.
1. Give Them Some Money
Although it may sound a bit contradictory, but really the best way to teach your children the value of the money is to give them some money. As soon as your child is big enough to go to the nearby store alone, you can safely give them some money.
The purpose of this is that your child understands the value of the money you gave them. For example, if your give 5 bucks to your son, and he goes and spends 2 bucks to buy a candy, he will understand that his treat costs money, as well as that there is change of $3. As time passes by, your child will learn exactly how much the money you’re giving them is worth.
2. The Allowance
When your children grow up a bit, it is time to start giving them weekly or monthly allowance. Establish an exact sum you want to give your child every week and make sure you specifically emphasize that there will be no additional money until next week.
This way you’ll teach your children that money needs to last a while. They need to understand that they can’t just go out and spend all the money they have at once. Watch for things your child buys for the money you gave them and offer advice if necessary. However, don’t give in and give your kid more money if they spend what you already gave them – no matter how much they beg for it.
3. Introduce the Interest
Every parent wants their child to grow up to be a responsible adult. Among other things, that also means that the child will need to learn how to save money. The best way to do this is to introduce your kid to the interest.
It’s very simple really. Offer your kid to save the money you would give them for their allowance and only give them the interest. So, instead of giving your kid $20, offer to give them 5$ if they agree that you save those $20 for them. Your child will probably not understand this at first, $20 does sound better than $5. But, once they realize that saving pays off, you can be sure that your kid will grow up to be a frugal, responsible adult.
4. Outsmart Your Teenager
Teenagers are really the toughest when it comes to teaching your children that money doesn’t grow on trees. They are still kids, but they want to be adults and that’s where the troubles appear. But don’t worry, you can be smarter than your teenager.
The weekly or monthly allowance is here a must. Your child should by teenager years know how to allocate the money to last enough. Under no circumstances should you ever add to the money your teenager has already spent. That way, you’re just teaching them that money will come whenever they need it and that they don’t have to do anything about it.
5. Summer Jobs and Help Around the House
Encourage your teenager to get a summer job or to find another way of earning extra money. Experts advise not to give your children the money for the things they are doing around the house. You’re not getting paid for that either. However, if your child does something that you should have done, it’s ok to treat them with some extra bucks.
Earning their own money is really the best lesson you can provide your kid with. Don’t forget to teach them that their weekly check looks big now when they don’t have to pay for rent or for food, but they will need a lot more money once they move out. This is also a great encouragement for your kid to go to college, because proper education is the key factor to making good money in life.
Well, you do know that money doesn’t grow on trees and so should your children. Make sure you teach them this valuable lesson as soon as possible and share your experience.
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