Teaching Kids About Money
Teaching Kids About Money – Have you ever wondered how early to start teaching your children about money? Do you already have an allowance set for your kid? Have you and your children talked about saving, sharing and spending? My husband and I tried to get in the routine of giving our child an allowance money she can spend, save and share. She has a bank account she started by herself at our local credit union. It was a very powerful message to show her the importance of saving for the future.There’s so much more to money than saving and spending. If you are wondering whether you should start an allowance or money rewards program for your children, here are some simple suggestions to consider:
1. Choose your words for maximum effectiveness:
Talk to your children about your decisions on how to spend your resources. It’s a lot more effective to tell a 7 year-old that the overpriced toy she wants “is not the way we are choosing to spend our money today” rather than to argue with her about the fact that the toy is too expensive or about the fact that she doesn’t need another toy. Slot Game Online.
It helps you put spending money in the arena of responsible choices and it clarifies for the child that you wouldn’t buy no matter how much it costs!
2. Share your banking experiences with your children:
When you have a trip planned to the bank, take your 3 year-old with you and explain what you are doing. You can talk with him about how the only way to have money in the bank to spend is to put money in. Slot Game Online.
If you are using an ATM be very clear that the only reason the machine will give you money, is because you have first put money in. Following this strategy avoids the idea some children have that there’s some kind of “magic” at work and that the bank gives you money just “because”. Teaching Kids About Money.
The use credit cards is another conversation that is important to have. I have heard many children say things like “my daddy’s credit card never runs out of money” or ” what do you mean you can’t buy that? Just use your credit card?”. It’s clear that unless we explain to our children how a credit card works and the best use for them, our children think it’s just a way to get money out of “thin” air!
3. Share your financial situation with your kids in an honest, age appropriate manner:
Make sure that if you are experiencing financial setbacks. That you share with your children in a simple yet clear way what is happening. For example, if you have found yourself without a job, explain to them that as a family. You may have to make some adjustments on the choices of how you spend your money. Slot Game Online.
Invite them to come up with ideas on how they can be part of the adventure of saving money. You may be amazed at how creative they can be while at the same time taking ownership for the process!
4. It’s OK for your child to ask you for anything they want:
This is one of the toughest lessons for parents, especially those raising very young kids. It’s OK for our children to ask us for anything they ever want: they are bombarded with advertising that tries to convince them. How they will only be happy if they bought every single thing they see on TV! Slot Game Online.
Many kids- especially young ones-have a hard time differentiating between wants and needs. Without losing your cool, allow them to ask and stick to your prepared response. “We are choosing to spend our money a different way”. “We are here only to buy groceries”or some other phrase you are comfortable saying. Try not to say “we can’t afford that” or “that is too expensive” because all that does is encourage them to find something else cheaper to ask you to buy!
5. Teach your kids how to use their resources wisely:
Many people are finding that using thrift stores. Consignment shops or even buying things on Craig list is not only a smart way to use your financial resources. But also a practice that helps the very young kids can understand that buying certain items used. Or at discounted prices can save so much packaging from going to our landfills. Emphasize the “go green” trend! Slot Game Online.