Raising kids is both rewarding and challenging. How do you know you’re getting it right in teaching your kids about money? Well, the truth is you don’t. Teaching kids about money can be one of the most important parts of their life education. Here are a few of our suggestions of great ways to teach your kids about money.
Talk about money.
Talking about money should start early on. There is no ‘age’ too young to begin teaching your kids the language, the behaviours and attitudes towards money.
Kids need to know that money has value, and as soon as it’s spent it’s gone forever. This is a simple concept for very young children to understand. A good way to demonstrate this is to use cash as much as possible when they are around so they can see the exchange.
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Try to avoid introducing kids to credit cards until they’re older as this provides the sense that a “magic” card will buy you anything you want.
Parents sometimes decide not to give their kids an allowance but some experts say this is a great way to give children the experience of money management. Some sources recommended that for each year of their life children should get $1 per week. Teens should have a monthly or bi-weekly allowance to teach them how to plan.
Parents should also be open and explain to their kids where the money goes within their own household, including savings plans.
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There are many ways to teach kids about money including how they spend their allowance, grocery shopping for different brands, paying bills, and going to the bank. Just use them!
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