Financial smarts don’t happen naturally. Your children have to learn how to make the best decisions. They also need to learn the basics, such as balancing a checkbook and writing a check. They also need to learn about earning money so they have a better understanding of where money comes from and how hard people have to work for it. Let’s take a closer look at important lessons to teach kids about money.
Important Lessons to Teach Kids About Money
First things first. Children need to know where money comes from. This is a good time to start giving your children an allowance. If your children already receive an allowance, consider allowing them to earn more money by doing small jobs around the house. Give your children jobs that are based on how hard they are. For example, folding the laundry may pay $1 and doing the dishes may pay two-dollars.
Getting the Most for Your Money
Another important thing your children need to learn is to get the most from their money. This is something you can easily teach when your children are buying toys or candy. Show them how they can get different kinds of toys or candy and end up getting more for the same money.
Waiting to Buy
Something everyone should learn early in life is waiting to buy something. When your children stumble across something they just have to have, explain that if they still want it a week from now, they can buy it. This helps weed out the items they just think they want. Your children will forget about most items and only buy the items they really do love.
Writing a Check
It’s sad, but most young adults have no idea how to write a check. While checks aren’t used as often as they used to be, everyone needs to know how to do this. This is something you can easily teach your children.
Balancing a Checkbook
Another thing that many young adults have no idea how to do is balance a checkbook. Again, this is something you can easily teach your children.
You don’t have to teach your children how to be extreme couponers, but it really does pay to teach your children about using coupons. A great way to do this is to only allow them to get sugary cereals if they can find a coupon to use. You can take things one step further by having them match that coupon to a sale.
Last, but not least, your children need to understand how to compare prices. Show your children how to use a calculator to find out the price per ounce. You also want to show children how to compare prices from different stores and why that’s important.
There are so many things your children need to learn about money. It might be shopping for the best prices or using coupons. Try teaching your children something new each week and use methods to make learning fun.
Resources to Teach Kids About Money
The Everything Kids’ Money Book: Earn it, save it, and watch it grow!Money Savvy Pig – GreenSAVING MONEY FOR KIDS: 5 Simple Steps to Help Your Kids Save Money and Lead Them to a Happier and Richer LifeThe Survival Guide for Money Smarts: Earn, Save, Spend, Give
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