Good Money Sense for Kids
Many parents despair of their kids because they seem to have no comprehension of money and how difficult things have become in terms of income and outgoings. However, this is not really something that kids can be blamed for given that most of them are not taught about the value of money in schools and in many cases are not taught anything about money matters at home other than being told that they can’t have an increase in their pocket money!
How to Teach Your Kids to be Good with Money
Whilst many educational authorities are looking more closely into bringing financial management skills into the national curriculum it is important or parents to help children learn about the value of money from an early age. Without this, kids will continue to make demands from parents for things that they cannot afford and will continue to have no idea about the difficulties that the whole household may be facing in terms of finances. More importantly, drumming good financial management skills and knowledge into your kids before they get to an age where they start earning money for themselves means that they are less likely to fritter their cash away or get into debt as they get older.
Whilst there are many fun ways to help kids to get used to saving, such as setting up competitions amongst siblings to see who can save the most from their pocket money, it is also important to teach kids about the value of earning and spending money, as this is something that they are going to have to get used to later in life.
One of the ways in which you can do this is to make your kids earn their pocket money rather than handing it to them on a plate. For example, you could get them to do household chores and earn their money that way or even get them to get a paper round to earn their spending money.
Kids make many demands of parents these days, wanting all the latest games, clothes and gadgets. If your child is getting pocket money or earning money through work such as a paper round, rather than buckling to their demands make them save up their money to buy what they want. This will make them value money far more and will teach them valuable skills for the future with regards to saving cash, managing their money and spending wisely!
Esther is a financial writer and blogger. She regularly blogs with money saving advice about mortgages, loans and tax reduction.