Teaching Kids About Money

Teaching Kids About Money

How to Teach Kid the Value of Money

by Gregg Murset, CFP

Love them or hate them, New Years Resolutions do make you think about the future. According to a 2012 survey by University of Scranton, an estimated 190 million Americans create a yearly list of things to do or improve upon. If by chance one of your items is to create a financial plan, live on a budget or get debt under control, then January is the perfect month for you to since it’s National Financial Wellness month in the U.S.  MyJobChart.com CEO Gregg Murset recommends making resolutions that are achievable for you but can also serve as teachable moments for your children.

To help move your children in the right direction in 2014, Murset suggests:

No More Hand Outs

Decide you are not going to just shell out money to your kids anymore.  When they come to looking for money, let them know that they will have to work for it. Tying work and reward together in meaningful ways will help them understand responsibility and accountability.

How to Teach Children About Money Management

Kids and Money Management

Crafty Ways to Teach Your Children to Save, Spend and Give

 

Teaching children about money management is an amazing gift a parent can give.  Make it fun and creative for a win-win!  Starting around age three, a child can start to grasp the concept of allowance.  This is NOT money we just give them.  They must actually do something to earn it.  The seeds you’re planting are work ethic, responsibility and persistency.  Who wouldn’t want their children to learn those big three lessons?  This is where it all begins.  Let your child know that you’d really love some help around the house and that they can earn some money by helping out.  That money can be set aside in one container for fun things like toys and games.  A portion of it will be put in a container and saved for something they want in the future.  Help them think of ideas as what that may be.  Maybe it’s a more expensive toy or a trip to the Zoo.  The last part will be put into a container to be given to other people who need it.  Just like sharing toys, it’s important to share money with others who need it.  Help them picture the place the money would go.  Maybe it’s a food bank, a religious organization or an animal rescue organization.  By helping your child visualize what the money in each container will be used for, it gives them a clearer motivation for earning the money and saving it.