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Easy Ways to Teach Kids About Money at Home
Saving money is important, but alas- too many of us develop healthy behavior with finances until too much damage is done! Below are some useful tips on how you can teach responsible saving behavior to your kids early on. These various lessons are fun, enlightening for kids, and very effective.
Make sure money is earned - not given
The point of this exercise is to teach children that money is earned and not given, and that honest, hard work yields rewards.
Let your child decide how money is spent
A larger stipend will also encourage your child to start thinking for the future and to learn about delayed gratification. Once a child sees that skipping out on a small indulgence in the short term can lead to enjoying a greater indulgence in the long term, he or she will be more likely to engage in other behavior associated with long-term saving, such as studying for exams, eating well and exercising, and, in the long run, saving for college, cars, homes, and retirement.
Share the cost
Sharing the cost on large purchases may also make your son or daughter think twice about certain things that seem like a necessity at the time. Cost, perceived value, and perceived necessity become very different when one has to pay for it!
Combine math and budgeting with toy shopping
Right around Christmas season, save all of the toy store adverts from the newspaper and in the mail. Give them to your child and tell them that they have a pretend $100 budget, and have to select the toys they would get with that money.
This is a great way to introduce young children to budgeting, as well as sharpen their basic math skills - it’ll also keep them occupied for hours and give you good ideas for holiday or birthday gifts!
Get your children involved in family budgeting
You can choose how much you discuss. You can, for example, only discuss the monthly food budget with them, or help your children help you save and plan for a vacation. This may help them appreciate the event more, and it’ll also help the entire family get excited about upcoming outings and treats.
Get your children involved in saving for their future
This will give your son or daughter greater ownership of their college education, and may make them less likely to take it for granted. When one is paying for one’s own education after all, one is more likely to take it seriously!