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Kids and Money. Tips for Kids and Money
Children often do not have a good grasp on what the value of money really is. Children often walk through a store, asking for things that they want without realizing what a bind it could put you in if you were to spend that extra $20 on that item.
Teaching children about money from a very young age is going to make the child not only appreciate what they can purchase with their own money, but they are also going to learn the value of taking care of their own items when they purchase these items their self.
Teaching children about money when they are very young can be difficult. Keep a little extra patience for children who are just learning, as most often, they are going to want to spend every little dime that they get when they first get it. After a few lessons, they will learn that if they save their money they can ‘get’ and ‘have’ things that are bigger and better, or just other things that they want.
How can you teach older children about saving money?
Children who are old enough to count money are old enough to learn to start saving money, putting their money away for a rainy day. When your child is old enough, take them to the bank and open a savings account. Tell your child that you will put money in their account when they do.
Matching what your child learns and tries to save is going to make their accounts grow larger every time they want to put something in their savings account.
How can you persuade your child in to saving even more money than they might have wanted to before? Talk about what they want to buy or purchase with their money after they save it up. Some types of larger purchases as a bike, a four-wheeler, or perhaps the latest game for the television or computer is what they want make them save up until they have enough money to purchase the item.
Encourage your children to learn the value of money, even if you feel like you are pushing them into it so that they can learn what they can really get later if they save their money – even the change.
If you have an older child, that is going off to school, or possibly a child that is just really independent, they could be in need of learning about credit cards and money more in detail.
If you are providing a credit card to a child to shop with, make sure they have a limit. Putting limits on how much they can use, and within what time frame, you are going to help them learn about budgeting their money.
For example, they have $100 per month to purchase clothes, books, notebooks, shoes, and extra food that they may be in need of when they are away at school. Because they have the cafeteria for their main food supply, and they took a stash of everything else they could possibly need with them when they went to college, a limit is a good thing, and will help them budget what they need and want.
To ensure that your small children grow to be financially fit and they understand about money in their life, use an allowance as a method of teaching children about money. When a child is small, a dollar a week is really plenty. They can purchase candy, a small toy, but the child will also realize that if they save that dollar, next week they can get something bigger and better.
It can be difficult for a child to learn about money if they always have money. Limiting the amount of funds that your child has access to, and limiting how much ‘extra’ goodies you are purchasing for them every time they ask for it is going to help in your teaching about the value of money.