How to Teach Your Child About Money

Don't let your child grow up ignorant about money. How a person handles his finances drastically affects his life. Begin teaching him now how save and manage what he earns. Do:

1. Pay him for chores.
Does your child do chores around the house? Pay him for the major ones like cutting the yard or doing dishes. Ask him to manage this money to purchase some of the extras he enjoys like snacks from the corner store and trips to the movies.

2. Open a bank account.
Start a savings account early for your child and let him contribute. You can use this mainstay as a way to teach your child about money. Allow him to see bank statements and how what he gives and withdraws translates over time.

3. Allow your child to shop.
When you go to the store, allow your child to shop for a few of his own items with his money. This kind of activity will help him understand better how much different products cost. He also might be less choosy on what he gets since he knows the price and has to pay out of his pocket.

4. Say "no" to some requests.
Avoid spoiling your child with excess money. You know you're on a budget and he should too. In efforts you put toward using cash and prizes (toys/clothes/gadgets) to give your offspring the kind of life you didn't have as a youth will back fire on you. Instead of making him grateful, you actions will just turn him into a greedy adult. Teach your child about money by vowing today to say no to unreasonable requests and explaining why they don't fit into your budget.

5. Show him a few of your bills.
Does your child understand how much you pay to keep electricity on in the house? What about your mortgage? Inform him by sharing your bills. Let him see what certain commodities cost per moth. You'll give him sticker shock and let him understand what living well takes effort.

6. Give him a bi-weekly allowance.
Give your child a bi-weekly allowance. Get your child in the habit of collecting money in a way similar to what adults do at work. Then, charge him with handling what he gets over this period of time. Don't give him more money when he runs out. This process will teach your child about money and not rely on extra handouts from others.

These six tips will help your child learn about money. Apply them and raise your child to be a fiscally, responsible adult.