We all want our children to have a good understanding of how money works and how to make the most of it. One way we can help our kids is to teach them how to manage money. Whether it’s by giving them an income or letting them spend their money how they please, there are tricks you can use to teach kids how to manage money.
Give Them an Income
Different parents approach this differently. You may choose to give your kids an allowance or let them earn their money. It all depends on the age of your children and what you want them to learn. If you want them to learn what the real world is like, it’s a good idea to let them earn their allowance. That way they learn the connection between hard work and income.
Teach Kids to Save
A great way to teach kids to save money is to use a clear jar. This way kids can actually see the amount growing. They can also see the amount go down when they choose to buy something. This is a simple yet effective way to teach kids how saving and spending works.
Show Them How to Comparison Shop
When your children want to buy something, show them how to comparison shop. For example, if they want art supplies, take them to different stores to see how much money they can save at each store. This is also a good time to teach them how saving can help them stretch their money so that they can buy more.
Let Them Spend Money How They Want
Even if you feel that your kids are making mistakes in how they spend their money, don’t say anything. They need to learn that some purchases are a waste of money. Let them learn that on their own. Once they learn their lesson, explain to them that you often get what you pay for and that if they save for a better quality item, it pays off.
Open a Savings Account for Them
Last, but not least, open a savings account for each child. Using a savings account booklet is a great way to teach math and let them see the number get larger and larger as they make more deposits. You can also help your kids choose goals so that they have an amount to reach for.
Your kids are never too young to start learning about money. You can teach your kids a number of lessons on managing their money. These are lessons that will last a lifetime.