This is an article I posted a few years ago and I thought it would be a good weekend read. It’s never too early or too late to start teaching kids how to save money. Enjoy!
It is important for parents to teach their children about the value of money. This includes imparting lessons in money management and teaching kids to save money. It is never too early to begin imparting these lessons to your children. You can do it as soon as your children learn how to count. This is when you can first introduce them to money and explain to them how much each dollar bill and coin is worth. When they are old enough to understand, you can then teach them how much each dollar and coin is worth in relation to other dollars and coins.
Once you have given them a basic introduction to money and how currency works, then you can start providing lessons about how you pay with them. Whenever you go to the store with your children is a great opportunity to do just this. You can also start teaching kids to save money at this point by showing them how you would rather buy something that is cheaper than buy the more expensive item which works about the same. You could also explain how you are not going to buy an item because you do not have any use for it, thereby saving money that way.
Another way you can teach your children about money management is by giving them an allowance for chores that they do around the house. You could also provide rules and spending limits for the allowance. That could be the only money that they will get to spend on items that they want, and you will only buy them stuff that they need. You could also perhaps limit the amount of money that they can get a week. If they use up their allowance, then that’s it. They used up their allowance, and you will not give them anymore money even if they really want to buy something. That way, the kids are learning the value of a dollar and you are teaching kids to save money because they will learn what happens if they do not save it.
Teaching kids to save money early on has far-reaching effects into their future. Before they even have to deal with financial issues independently, they will already know what the wise decisions are to make in regards to spending their money. They will know the value of money and they will know not to waste it on frivolous items. Kids should also know how saving money can secure their family’s future. How does your family save and teach the value of money?
Disclaimer: All thoughts and ideas are that of Monica M. Jones.