With the holiday’s upon us…this is the perfect time to start teaching your child how to manage money and the difference between wants and needs. Today’s Parent has a wonderful article with money managing tips that will guide you through the simple steps in teaching your child how to manage their money, (Kids and Money ). Teaching children how to manage their money is not an easy task. When children receive birthday money they feel they must go immediately and buy “something”…..anything. Children need to understand the connection between money and values. In this society where many children get what they want, when they want it is hard for other children to understand. There will always be someone that has more or less then we do. It is difficult to teach a child to save up for something. But if we do, they will be much better off as adults knowing they don’t have to have the latest and greatest, right now. If we teach them to save and look for a good deal they will take great pride in knowing that they have saved for something and reached that goal in order to purchase what they want. Many times, with my own children, they will want something today but in a few days they will want something else. If they purchased EVERY thing they wanted right then and there, they would have NO money.
With the ThreeJars.com system you will teach your children how to Save, Spend and Share wisely. It is a simple system that will make it easy to monitor their saving and spending. Make a chore list, track their paydays and teach them the life skill of budgeting and saving in a fun way. Today’s Parent also offers an Allowance Calculator to calculate how much to share, Kids and Money Quiz, and tons of articles that you don’t want to miss reading. A Penny Saved is a Penny Earned!
Here are 10 tips to help children with financial responsibility, sharing, and the connection between money and values:
1. Be a positive role model.
Your child observes your spending and saving behaviors. Show them how to keep money in perspective. Have a healthly attitude toward your work while earning, spending and sharing.
2. Understand their environment.
Values, attitudes and beliefs are continuously evolving every day. Talk with your child on what they are seeing, hearing and feeling. Children want the latest and greatest especially if their friends have it.
3. Establish good behavior.
Set up a list of age-appropriate chores that they can earn allowance and have a designated date(s) that they will be paid. As children get older allowing your child’s allowance to last for several months so they learn to allocate their money time is a great way to teach them the value of money.
4. Talk about money.
Always talk openly about money …this will help your children learn valuable lessons and a healthy attitude toward money.
5. Make it fun.
There are many games that will help with basic money lessons like Monopoly, Life and Payday.
6. Do it together.
A“family savings fund” is a fun way to save for a common goal like a vacation. Children can help with research and creating a budget.
7. Give back to the community.
Giving back to the community is a great way to have children contribute. Walk a neighbors dog is they are unable to, pick up trash in the neighborhood park, etc…
8. Be fair.
Avoid comparing siblings or creating monetary competition in the household. It will be hard to keep everything consistent due to age ranges in your home but make every effort to do so.
9. Accept mistakes and celebrate success.
You need to set rules and limits but allow your child to make a mistake or two. If you allow them to make a mistake instead of protecting them this will help them in the future as an adult. Make sure to also celebrate each success as well.
10. Be patient.
Be patient…as you may not see success immediately. You need to trust that you are doing the best and know there may be setbacks.