You can teach your children how to budget, how to save, and how to shop sales, but if you neglect to teach them why they should do these things, it will doesn’t matter that you taught them everything else. It is important for your children to learn the reasons that money management is so important. This will help to motivate them to do it the right way when they grow older. Here are four things you can do to teach them.
1) You can show your children what happens when money is managed poorly. One way is to give them their allowance at the beginning of the month, and then when they run out of money midmonth, you let them go without. Another is to show them the money mistakes you have made, and explain the way it has impacted the family negatively.
2) You can also show your children what happens when money is managed correctly. You may want to share examples of your accomplishments with your children. Or you may point to other examples in their lives, such as their grandparents, aunts or uncles. This can help your children realize just how managing their money correctly can truly be a benefit for them.
3) Teach your children the benefit of setting money goals, by having them earn some of their bigger purchases. They will see that sacrifice does pay off in the long run. You can also set savings goals as a family. This can help your children to begin to make long term choices.
4) Additionally if you allow your children to see how you budget, and prioritize on a regular basis, it will help your children to begin to think about money differently. Once they realize it is a tool to be used wisely, they will be able to succeed with money management.
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