Teaching Kids about Money

Do you give your child an allowance? Do they know how to save? Do they know how to earn? Money is one of those necessary evils of life so it is important that you teach your child the basics while they are young. Most kids get a little money here and there, whether it is from a weekly allowance or money from the tooth fairy, but do they know what to do with it? What do they really need to know about money and how do you teach it when you hardly have any money yourself? Here are a few things to help you get started.

First off, it is important that your child understands that money doesn’t grow on trees. You have to work to earn your money, just like they do. A good way to teach them this concept is by giving them some options to earn their own money. Maybe they can get a couple dollars for weeding the front yard or for doing the dishes. It helps you out around the house and it teaches them that they have to work for what they want.

Teach your child how to save their money. Sit down together and come up with something that they really want; a train, a Barbie, a new movie, etc. Find out how much it is and help your child save their pennies until they have enough to get it on their own. They will appreciate it so much more because they had to work so hard to get it. Even your toddler can do this. At three and a half Logan is a pro saver! He saves all of his pennies and easily has over $50 in his little piggy bank. Today he wanted to go on the Merry-Go-Round at the Mall, he was so proud of himself when he got to pay for it with all his pennies. The ride was that much sweeter, because he got to use his own money to pay for it.

Have your child donate a portion of their allowance to charity. It doesn’t have to be much, but it shows them that money can help other people and is for more than just buying things. Every little bit counts and they will feel good knowing that they helped someone else in need.

In a world so driven by debt, it is important to instill these financial values in your child while they are young. It’s a lot harder to learn when they get a little older and the bills start piling up faster than they can count!

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Sarah Williams

About Sarah Williams

I am a single mother to a sweet little 4 year old boy named Logan. I am almost done with my degree in Elementary Education and have loved every second of it. I love writing for Families.com and hope to be able to help other single moms through the difficulties of raising a child on your own.