As children go through life, they will find that it's not easy to get money. The sooner they learn that money doesn't grow on trees and you have a limited supply of it, the better it is for them to understand why sometimes mom and dad can't give them what they want all the time.
The generation today has a lot of misconceptions about money, simply because they are not so much aware as how their parents work hard. The children that are guided and taught about the value of money, as well as spending and saving will most likely grow up to be adults that handle their money as responsibly as they can.
1. Money Concept - Broaching the concept of money to children might be a little daunting, but all you need is a little empathy and to view the whole thing in their perspective.
2. Children are Mimics - Child behavior experts can tell you that "children don't follow what you say, they follow what you do." This even stretches out to a family's saving and spending habits. Even if you're trying to instill good values to your child about money, yet all your child sees are mountain of bills, you swiping card after card to buy stuff you don't really need at home, and the like, have a huge impact on their views about money, too.
3. Allowances - Explaining to them why there is a need for an allowance is a great way for them to have a glimpse of what it is to have some form of money and how best to manage it to make it last through the week or to save it up for better things in the future. Allowances give children a kind of "simple autonomy" to realize how to make money work for them.
4. Make them Work for Money - Allowances can be made into a form of "salary" every time they do tasks and duties you both agreed on. It can be as simple as helping you fold the laundry, help in preparing lunch and diner, as well as helping you with the garden. It helps them realize that money is earned, not doled out to them for no reason at all.
5. Savings Account - Having cash laying around is particularly tempting to go to the mall and spend it, most especially for teenagers. This is why a great, kid-friendly bank account will help them develop a knack for saving more. Opening an account is fairly easy, and your own bank might have programs for children like USBank and their Just US Kids Savings Account.
6. Frugality is a virtue - Saving on little things might seem to not have a lot of impact now, but it will in the long run. Cutting promotional coupons from the Sunday paper, helping look our for supermarket discounts and more should always be practiced most especially infront of children.
7. Saving for Wants - A child may want a lot of things, and sometimes he or she may pester you for weeks to just get them the latest toys that have caught their fancy. Teach them how to look for low-cost toys and games that will fit their money. Help them save, budget and think critically.
There are a lot more things that you can teach children, like debt, giving back and even tight budgeting. But these tips are sure to get you on a stable footing when it comes to the finances of your child.
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