For elementary-aged children, money lessons are something that should not be avoided. While young children do not need to understand all of the goings-on concerning household income, they can and should learn age-appropriate lessons that will carry through adulthood if properly reinforced.
The tween age group, those who are not yet teens but still tend to spend a lot of money due to the large amounts of marketing being thrown their way these days, can learn many things about money to help prepare them for their years ahead. If parents are not teaching kids how to be responsible with their money, no one else is really doing that job for them. High schools and even colleges do not often cover the basic financial foundation lessons people need to know for the rest of their lives. Starting while kids are still young and impressionable can help instill habits that will help them manage their money more effectively in adulthood.
Parents also need to stay on top of their own financial management as kids learn a lot from watching their parents. By being more responsible with your own money and teaching kids the basic fundamentals of managing cash, you can help set the stage for a more financially stable future for your kids.
Kid-Approved Financial Lessons 1 of 5
Every parent will have their own ideas about what kids should know concerning money but there are a few basic starting points to consider if the money subject has not yet come to pass in your household.
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Earning Your Keep 2 of 5
There are some parents that do not believe in paying children for their basic family responsibilities. While it is up to individual families to make this decision, it can be noted that allowing children to earn money for the work they do can prepare them for the future. In order to earn a living later in life, they will need to work responsibly and consistently. While basic chores may not be wage-worthy, there are a number of other odd jobs kids can do around the house to earn a few bucks.
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Encourage an Entrepreneurial Spirit 3 of 5
Listen closely when you hear a child talk about an interest in a certain topic or field and get creative together to find ways to harness that interest and encourage a child's entrepreneurial spirit as a way to earn some spending cash.
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Shopping Analysis 4 of 5
Taking kids to the mall and buying them whatever they want is not likely going to be a good lesson in financial management. Parents can bring their child on shopping trips and spend some time teaching them how to compare prices, find a deal, and stay within a budget. These are all good lessons to be learned at an early age especially when many kids that age still believe money comes freely out of machines on the wall.
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Bank on It 5 of 5
Setting a child up with their own personal savings account can be a big deal. Seeing their name on the deposit slips and allowing a child to make the bank transactions on their own is a great way to reinforce the importance of saving. Many banks cater to kids, offering lollipops and treating kids like grownups. Parents should stress the importance of adding money to the account on a regular basis. Older kids can do the math themselves to find out how much they need to put away in savings from their birthday money or allowance. The general adult rule of thumb is 10% but kids that do not have expenses should be putting away more while still leaving a few bucks for their own discretionary spending.
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