Forgot your password?

Teaching kids about money

By Edited Nov 13, 2013 0 0

Many people think they are doing their children a favor by supplying them with their hearts' desires as they grow up.
They buy them the latest jeans, the cutest sweaters and the must have it toys.
When these children grow up and move out of their parents' homes, they are then expected to earn money and pay for their housing and food, but how will they know how to manage their money if they have always had everything provided for them?
Children learn about how money works at an early age. They see their parents paying for things at various stores.

In exchange for this money, they are given the toy, the food, or the clothing that they have presented to the cashier. It seems very simple to a child. They need to learn early the value of this money and how it is earned and exchanged.
Sometimes children receive some money from mom or dad or their grandparents for a birthday or for Christmas. They, too, will take their money to the store and exchange it for what they would like.
In addition to these presents, children should also be given an allowance so they can learn to manage their money, save their money, and spend it responsibly so they do not become adults who cannot manage their money.

Many experts believe that as soon as a child is old enough to ask for something at the grocery store or toy store, then it is time to give them the responsibility of an allowance.
In order to determine how much of an allowance a child should receive, you should determine how much you can afford and how much you think is reasonable based on your child's age.
You may want to create a system in which the child's allowance grows as the child grows.
You may also want to create a rewards system. Maybe there will be a base allowance and the child will be able to earn additional amounts based on behavior and completion of household chores.

As your child earns his money, be sure to have a discussion with him so he understands how the allowance works and what items that he will be responsible for buying.
If he wants the latest toy, he will need to buy that item with his own money.
If he does not have enough, then he will have to save his weekly/monthly allowance until he has accrued enough for the item. Additionally, you should not buy such items for the child. This will only teach him/her that he is not responsible for funding his own activities and you will be available to bail him/her out if necessary in the future.

For more expensive items, you may want to work out a plan with your child. If he saves half of the amount needed for the item, then you will fund the remaining amount. You just need to be sure you stick to this plan to make sure your child understands the responsibility.

Learning to manage money starts at an early age and you can help your child be financially responsible. Remember to make rules and stick with them and the lesson your child learns will last them a lifetime.



Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Lifestyle