A lot of people get into their adulthood not knowing how to manage their money. Too many people have gone into debt after college because of the inability to use their money in the proper way. It’s key to learn about money at a young age with your parents. How you teach kids about money depends on how old they are. Listed below are different ways to teach your child about money based on their age.
Elementary School Level
1. Use a clear jar as a piggy bank. When your child can clearly see the amount of money that they have, they can see daily how much their money grows. For example, one day, they may have one dollar. Then the next day, they might have a dollar and a dime. Make sure your make a big deal out of this. Seeing how much money they have, and knowing how much the money is worth, is important in showing them how nice it is to have money.
2. Show them the stuff that costs money. When your child know that the things they want cost money, they’ll become very motivated to save up for the object they so desperately want.
3. Set an example. Little eyes are watching you so it’s important that you’re setting a good example for them to follow. Try not to argue with your partner about money in front of your child. It’ll only make them worried and get them to believe that arguing about money is a norm.
1. Don’t give allowances; instead, give commissions. You shouldn’t be rewarding your child for sitting on the couch all day playing video games. Make them work for their money. Make them sweep the kitchen floor, do the dishes, do the laundry, etc. When they work for their money, they can see just how hard they must work in order to be paid. This will also give them the feel of having a real job.
2. Show them that sometimes you have to prioritize your spending. If your child wants to buy new shoes, remind them that if they buy those shoes, they won’t be able to buy that new dress they want. This will make them think about which item they would rather spend their money on.
3. Stress the importance of giving. Once they start making their own money, it might be a good idea to persuade them to choose a charity they’d like to donate some of their money to. This simple action will be very humbling to them; allowing them to realize the importance of money and giving.
1. Give them the responsibility of a bank account. Allowing your teen to have the responsibility of having a higher amount of money in a bank account, will allow them to be more conscious with how they spend their money.
2. Teach them the danger of credit cards. Once your teen turns 18, credit card salesmen will be swarming your child to get a credit card. If you don’t teach them about why debt is a bad place to be, they could quickly fall victim to credit cards.
Your child’s age will determine how you go about teaching them about money. This type of concept won’t be easy to teach, but there are numerous techniques to use to get the message across. If you aren’t the person to teach your kids about money, somebody else will, and you don’t want that.