Good habits are more likely to stick around if done at an early age, give your kids a head start! Learning about money and how to manage it is fundamental.
When you look back on your childhood are there certain moments that stand out that may have taught you lessons about money? Teaching your children about where money comes from and how to be responsible with money are lessons that you can teach children throughout their childhood.
1. Give a Commission
One option that may be beneficial is to provide a commission (otherwise known as an allowance) for your child doing chores. This will show them that they have to earn money. As they move into their teenage years you may want to have them get a part-time job so they can earn additional money.
2. Create Saving Method
Now that they are earning money help them choose the best place to save the money. If they are young, this may be a piggy bank. If they are older, you may consider opening a joint bank account for them. By showing them how to save money they will learn that you don’t just spend the money that you worked for, you want to set some aside in savings.
3. Find Ways to Spend Money
With the money that they have set aside have them use it every once in a while, when they want a new toy, treat, or clothing item. This will help them assess if this item is something that they really want to spend their money on.
4. Talk About Credit
As your child nears college age you should discuss with them credit cards and go over the risks and benefits of opening one. By educating them about credit cards you will help them understand the responsibility of having a credit card and needing to pay it off.
Educating your children about money and how to build healthy habits with money is important for them to start learning at a young age. Consider having them earn a commission for chores, show them where and how to save their money, have them purchase items with their own money, and teach them about credit card responsibility.
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