Even the best-natured child can get a case of the “gimmes” from time to time. However, you may be able to avoid all of the tantrums and begging by teaching your children about the concepts of earning, spending and saving. Here are some easy ways to teach kids about money:
Allow them to earn money for chores.
There’s no reason your children can’t pitch in a little around the house and in the yard. From dusting and folding laundry to watering plants and walking the dog, there are plenty of basic tasks you can delegate to your kids. Assign simpler chores to younger children and supervise them to make sure everything goes according to plan. After they’ve fulfilled all their responsibilities for the week, you can reward each child with an allowance.
The amount you give is up to you, but you want to be generous enough to empower your kids as they learn to budget and buy things for themselves.
Let them spend the money they earn.
Put an end to the “gimmes” for good by implementing a rule that your children have to spend their own money on non-essential items. As a bonus, you’ll also encourage them to brush up on their math skills. When kids see a new toy that they just have to own, they’ll need to figure out if they have enough money to pay for it.
If they can’t foot the bill, then the item stays on the shelf until they can come up with the cash. Letting your children use their own money will help them learn the value of a dollar and hopefully prevent all those toy store meltdowns. It really is a win-win situation!
Encourage them to save their money.
Once your kids find things they want to purchase, they can set goals to save up for those items. They’ll soon discover that sacrificing a bit of candy and bubble gum now can lead to a big payoff later. Your child will feel a sense of accomplishment when he or she is enjoying a new video game or a fun jewelry kit. You can offer gentle reminders to your children about their saving objectives, but don’t be afraid to let them make a few mistakes along the way.
Even if they give into temptation and have to start the saving procedure over again, the lessons they learn will be worth the price of a few sweets and trinkets. Ultimately, this process isn’t about toys or even the money itself. It’s about giving kids the skills they need for financial success and a bright future.
When it comes to the concepts of earning, spending and saving money, it’s never too early to start instilling good financial habits in your children. The sooner they can begin making sense of dollars and cents, the better off they’ll be. Try using these simple tips to help your kids learn piggy bank lessons that are truly priceless. You’ll be giving your little money managers a solid foundation to build on for many years to come. That’s something you can take to the bank!