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How To Teach Kids The Importance Of Money

 July 24, 2014  /  Comments Off on How To Teach Kids The Importance Of Money

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Teaching kids the importance of money can be a difficult process, especially if, as an adult, you haven’t quite figured it out either. The notion of money and finance is a complicated one, and in many cases, can take an entire lifetime to fully understand.

Fortunately, there are many ways to impart this knowledge onto your kids through various exercises and activities that are both fun and educational, and here’s how:

How To Teach Kids The Importance Of Money

Start Small

For those between the ages of 3 and 5, it’s going to be really hard to grasp the concept of finance, especially the more advanced aspects such as saving and investing. But, if your little one is at the appropriate age to start getting familiar with money, there are plenty of ways you can show him the how it works and how it can affect his inevitable adulthood.

  • First off, get three jars and label them “Saving,” “Spending” and “Sharing.” Then, every time your kiddo gets some money, either on his birthday, for doing chores, allowance or whatever, tell him to put it one of three jars. This will not only teach him the difference between each jar, but also show him when each jar is appropriate.
  • Another thing you can do is encourage your child to set a goal, such as save up money to buy a toy or something else he has his eye on. Iterate and reiterate the importance of saving his money for bigger ticket items and how to have the discipline and patience to wait for his funds to stack up.

Build from There

Once you have the laid down a solid foundation, it’s time to further build on Junior’s understanding. This can be done in a number of ways, and depending on the values you’re trying to establish with him, may look a little different each time. However, after he has a handle on the basics, there are some other next-level things he’ll need to know.

  • As your little man gets older, explaining to him the difference between brand-name and off-brand products will give him a better understanding of how he can get his money to stretch further.
  • To practice this, give your child a few dollars next time you go to the grocery store together and have him pick out a few things you need. The more he does this, the better he’ll get at finding deals and shopping smart.

Leave a Lasting Impression

As your little guy gets older, there will be quite a few more lessons for him to learn. Whether you’re helping him finance his first car, or helping him fill out his student loan forms for college, he’ll need you to be there and have his back. It may jerk a few tears to see him leave the nest, but with the right guidance, he will be able to fly the coop and you won’t have to worry about where he lands.

  • If possible, push your kid to get a part-time job when he’s old enough to. It will not only help him establish a better work ethic, it will help him save up some money to either put toward college or anything else he may want and or need.
  • As he approaches his senior year in high school, talk to him about whether or not he wants to go to college. Discuss with him the potential financial burdens of doing so and how you can help. If he needs to have a job during his undergraduate, explain that to him and be supportive of the decision he makes.

At the end of the day, all parents want is for their children to grow up to be happy, successful and well-adjusted adults. So, when it comes time to learn how to be financially stable and responsible, teaching them those lessons sooner than later can make a world of difference. It may be a tough learning curve, but with the right nurturing, you can help them grow into the great person you always wanted them to be.

Frank Mccourt’s wife recently gave birth to their first son, a beautiful baby boy named Charlie. And although Charlie is brand new, Frank and his wife are already looking forward to showing him the world.

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  • Published: 3 years ago on July 24, 2014
  • Last Modified: July 24, 2014 @ 5:19 am
  • Filed Under: Family & Personal

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