Teaching children how to be money smart can be one of the most rewarding things you do for both you and your child. A child that learns how to be financially responsible will grow to be a money smart adult. Here are a few tips on how to raise money smart children.
This is something that should be done from the day they understand actions, as early as 2 years old. A savings jar can be added as an accessory which is used to deposit spare change from around the house. You can make it a game with your children. Younger kids may not understand the concept of money right away, but the concept of ownership will begin to develop.
To add to the savings jar, add chores and an allowance. Your children will learn very quickly, when they work hard...rewards come. Let them count the dollars and cents each week and keep a tally. It may be fun to have a purchase in mind, a goal for them to be saving for.
Give them a Loan
As your child gets older and understands the concept of money. Give them a small loan for something they would like to purchase and have them pay back their loan in weekly or monthly installments.
When shopping with your child, be sure and include them on the purchase process. Look at prices, labels and explain how you save money when shopping.
Don't Give Them Money They Have Not Earned
If your child is saving for something special and they are close but don't have all the funds, don't give them the extra money. Once you give them the extra money, they will always depend on you to help them out. If you let them achieve their goal, it will be rewarding for both of you.
By: Lori Cummings [email protected]