Teach Your Kids About Money

by Pam on May 2, 2009

Whether you like it or not, if you are a parent, you are a role model for your kids.  Your kids observe the way you handle your money and will often handle theirs the same way.  However, even if you are financially savvy, your kids won’t necessarily be as successful without some guidance starting at a young age.

Here are some things every kid should learn about money from their parents:

1.  Money doesn’t grow on trees.  Parents have to work hard for every dollar they earn.

2.  Parents have priorities for their money.  It needs to be used first for food, shelter, clothing, and savings, and whatever is left can be used for extras.  Kids have to learn that they cannot always get what they want.

3.  Teach your kids the value of giving.  Encourage them to give part of their allowance to a charity or sponsor a child as a family.

4.   Teach your kids the value of hard work.  Have your children do some small chores around the house in order to earn their allowance, rather than just handing it to them.  

5.  Be proactive and have your kids help you cut out coupons or search through flyers to find good sales.  Let them help you choose items in the grocery store that are the best deal.  Make a game out  of it.

6.  There are board games and online games that you can play with your kids that encourage learning about money.   Monopoly of course is a well-known one, but there are also more in depth games such as Rich Dad Cashflow 101 that teaches kids and adults about investing and wise use of money.  Robert Kiyosaki, the author the Rich Dad book series, created Cashflow 101 and there is a board game as well as an online version.  

7.   Teach your kids about the importance of saving.  Help them to open their very own savings account. A great way to encourage kids to save is when they want to buy something expensive.  Have them save a portion of their allowance and over time they will have enough to make the purchase.  Having a goal for their savings makes it much easier than saving for the sake of saving.  

8.  Show your kids the importance of comparing prices when shopping.  This is easy to demonstrate by choosing a product and then selecting a few websites that carry that specific item.  Have your kids look through each site and find the least expensive one.

9. If you are going through some tough times financially, stay open with your kids about what is happening.  They will sense if something isn’t right anyhow, and it is better to keep your kids informed.  By doing so, your kids will be more understanding about why there are fewer extras and it will bring your family closer together.

 5.  Be proactive and have your kids help you cut out coupons or search through flyers to find good sales.  Let them help you choose items in the grocery store that are the best deal.  Make a game out  of it.

 6.  There are board games and online games that you can play with your kids that encourage learning about money.   Monopoly of course is a well-known one, but there are also more in depth games such as Cashflow 101 that teaches kids and adults about investing and wise use of money.  Robert Kiyosaki, the author the Rich Dad book series, created Cashflow 101 and there is a board game as well as an online version. 

 7.   Teach your kids about the importance of saving.  Help them to open their very own savings account. A great way to encourage kids to save is when they want to buy something expensive.  Have them save a portion of their allowance and over time they will have enough to make the purchase.  Having a goal for their savings makes it much easier than saving for the sake of saving. 

 8.  Show your kids the importance of comparing prices when shopping.  This is easy to demonstrate by choosing a product and then selecting a few websites that carry that specific item.  Have your kids look through each site and find the least expensive one.

9.  If you are going through some tough times financially, stay open with your kids about what is happening.  They will sense if something isn’t right anyhow, and it is better to keep your kids informed.  By doing so, your kids will be more understanding about why there are fewer extras and it will bring your family closer together.

 

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