5 Ways to Teach kids about Money
By P.E. Barnes
1. Let the kid(s) help you with your grocery budget. Budgeting is such an important part of managing and growing money. Turning a everyday tasks into a teachable lesson helps kids grasps the lesson. Take your family to the grocery store share the lists and the budget and stick to the budget, even if it means having to put things back.
2. Let them earn an allowance. Many parents choose to give their kids allowance, without earning it via chores or other tasks. Experts suggests allowance should be given as a reward for household chores. This builds character and establishes a healthy connection between money and work.
3. Instill the importance of Giving. Teaching children the value of giving rather than always receiving is a gift that benefits the child and society. Start conversations with your child about causes that matter to them and discuss ways they can help. Create a budget that includes monthly giving such as tithes. Lastly giving doesn’t just have to be monetary it can be donating old toys, books, and clothes.
4. Help them practice delayed gratification. Studies show that delayed gratification is one of the top determining factors of success. These benefits include academic success, higher standardized test scores, healthier weight, and positive relationships with peers amongst other things.
5. Open a savings or checking account or both. Teaching children to manage money in a checking account early can prevent them from mismanaging money as young adults. Chase Bank, Greenlight, and other banks have great debit card/checking account services for children. You can pay children their allowance and designate what area the money can be used for such as Spend, Save, Earn.