Here are tips for helping children understand the value of money.
One issue of hot debate lately is how best to teach children the value of money from an early age. Using kids money saving charts, along with other tools, can help parents raise fiscally responsible kids. When kids learn the value of money lesson early, they are better prepared to handle their money responsibly as they grow older and enter the work force.
Help Your Younger Children Save Money
One of the biggest questions that parents find themselves facing is, "when is it appropriate to begin teaching children the value of money?" The simple answer is, "the younger the better!" Even a young toddler of three or so may be able to begin understanding that at the store a person has to pay money in order to purchase items. Kids money saving charts can be used this early. The design used would be much simpler than what would be used for an older child. Put together a chart that enables the child to see that he or she has earned something each day. An example would be a quarter for each day the child picks up toys before bed. At the end of the week, take the child to a dollar store and allow him or her to choose and pay for an item. After some time, build up to two weeks between trips to the store, and continue increasing the time frame so that the child learns that the longer the wait, the more money there is to spend. As the child becomes more able to delay rewards, the system and use of money saving charts can become more complex.
Help Your Older Children Save Money
With an older child learning to save, parents can create a much more in-depth lesson. Open a savings account for the child to be solely responsible for. Guide the child to set financial goals. Then, design a money saving chart together. This way, the child is more involved in the activity, and financial lessons are more likely to stick with him or her long term. Help your child choose something to save towards, such as a bicycle or video game, and then come up with a plan. The outcome of this activity is learning to track deposits, interest earned, and control personal spending. What is interesting is seeing how well the child sticks to the savings plan. Suddenly, the cost of a trip to the movies or a new toy will become more significant.
Teaching Your Children the Value of Saving
The end goal is to teach children the value of savings. Learning young in a controlled situation is far better than entering adulthood and finding out how to handle money on a trial and error basis. By having the child learn the lesson over time, it will be more likely that setting financial goals will be a habit, and not something foreign that is thrust on him or her with adulthood. Money will not be a big issue or problem for these kids when they grow because it will have become part of their daily routine.