We live in an in debt, over stimulated world. It is technically considered “good” to have “good” debt to establish good credit. We have home loans, car loans, school loans and the list goes on. As with anything worth learning, the best and most well-received knowledge comes to us when we are children. This is why I think it is critical to start teaching our children how to manage their money at a young age.
The basic concept of good money management:
Lets face it, our children do deal with money. How? Well, they get money through birthdays, Christmas, and other holiday gifts, allowances, lunch money, lemonade stands and doing extra tasks here and there. Every time your child gets a dollar, it is an opportunity and good practice to discuss what he or she is going to do with it. Your child is also watching how you and your partner handle money related issues. Wether you discuss a big purchase, compare pricing before buying or impulse buy things at the register at check-out. Basically the way we as parents deal with our finances will most likely affect our kids attitude about money.
Talk to your child about the importance of savings and how much to save. Give them ideas and reasons why it is important to save. Help them visualize it. Ask them what they would like to purchase. Is it a new doll, an ice cream cone, or tickets to Taylor Swift?
Make it a fun habit. Use clear mason jars so they can see the money grow. Let them decorate it. Help them create short-term and long-term goals. Use the same jar or better yet, have them use separate jars. One can be their short-term candy or toy store trip jar and the other one can be their family vacation or first car jar. Help them understand the concept of how much they need to save. If they understand it, they will buy into it. Keep it simple, start with half of the money they get
Reason with them but ultimately let them make their choice. After all it is their 45% right?
– Bunny Money By: Rosemary Wells
– Money Matters for Kids, New Edition By: Larry Burkett, K. Christie Bowler
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– The Lemonade War By: Jacqueline Davies
– The Everything Kids’ Money Book: Earn it, save it, and watch it grow! By: Brette McWhorter Sember