3
Simple Ways to Teach Financial
Responsibility to Your Kids
Knowing how to maintain and monitor one's
finances is an important life asset to have - after all, without a proper eye for
the value of a dollar, one can easily get into debt and struggle making ends
meet and providing for the family. You don't want this person to be your
child. While you may be a penny-wise person yourself, that doesn't necessarily
mean that your child will naturally inherit these traits via genetics. You need
to make sure that you start teaching your child money management skills as
early as possible so he or she can develop the skills that can help them
progress later in life. That said, below are 3 simple ways to kick-start your
mission.
1. Give a Set Allowance Early On
Even if your child is just a toddler, go ahead
and give your child a "modest" allowance—maybe something has small as
$5. Distribute it in singles and even some coins so your child can get familiar
with the value and touch and feel of each. Whether you issue a monthly or
weekly allowance is up to you, but allow your child to use this money to buy
little odds and ends like pencils, erasers, and other small toys and candies.
Whatever you do, just don't "give in" to all of your child's demands.
If he or she wants something that isn't a "necessity," direct your
child to what's left of his or her allowance. Take this time to also set up a
piggy bank so that your child can learn the value of saving as well. Naturally,
as your child gets older, the allowance amount can increase. And if your child wants more expensive
things like extra cell phone minutes or iTunes, direct to the allowance.
2. Masque
Money Management Lessons Through Games
One of the
more inconspicuous ways to teach your child about money management is to simply
let them have fun with various games like Pay Day and Monopoly. By providing
fake money and different worst-case money scenarios, these age-appropriate
games require players to distinguish between wants and needs as well as
the importance of paying bills and being employed in order to win the game.
3. Make
Them Work For "Extras"
At
some point, your child is going to have to learn that he or she is going to
have to earn their income. If you already require your child to do chores in order to
earn his or her allowance, great. But if your child complains that he or she
needs more money (which will commonly occur in the teenage years), send
them on their way to find a job. If they're too young to have an actual job, that doesn’t mean they can't turn into little entrepreneurs and make money
other ways, such as babysitting, pet sitting, mowing lawns or hand-washing cars in the
neighborhood. Learning how hard it is to make money will make them appreciate
the money they earn as well as yours.
By-line:
This guest post is contributed by Katheryn Rivas, who writes for online universities blog. She welcomes your comments at her email: katherynrivas87@gmail.com.
No comments
I really enjoy hearing from my readers; thanks for sharing your reflections with us!