How to Teach Kids to Manage Money; Get Them Involved Early with an Allowance for Independent Kids
Providing an Allowance and Involving Kids Early in Money Management Teaches Independence
Rules for setting an allowance:
Setting an allowance can be based upon a child completing a set of chores, or for general participation and a positive attitude in being a valuable family member.
Some parents chose to split it up and give their children mandatory chores that are part of being in the family, and also set an additional set of chores for additional allowance funds. This can be likened to over-time or working special projects, or a second job in the real world.
Teaching kids about responsibility
Some parents think that children be charged or held accountable for things that they damage or lose.
Others recommend that parents take opportunities in real life to share their lives with their children, and to set the stage for appropriate learning.
Do the bills in front of the kids, make sure they know you do it on a routine basis.
Include them in discussions about costs and vacation choices;
Teach them how to use an ATM and talk about the fees associated with using a bank
Help them open a bank account
Teach them to save 10 - 25% for short and long term goals, and a rainy day when they want to go somewhere and you aren't paying
Include them in the family business - show kids how to manage money by letting them earn it and spend it
My sister in-law and brother own a breakfast restaurant and on weekends, their kids are getting old enough to go in and help bus tables for a few dollars a day.
If they want a game for their hand held DS gaming devices, she splits the costs with them after they have earned their half. She is teaching them to go for what they want, and at the same time, by her pitching in, she is showing support and helping them attain their goals without so much pain that they give up.
Implementing an allowance policy is a great way to introduce kids to money management.
Click the link for another article about raising independent kids.
Source:
Money Management for Kids, Kathy Peel
Published by Kay Balbi
"Life is a journey, not a destination. You only get one life-are you living it?" Freelance writer and business management consultant Kay Balbi has many passions and interests to share. She is an author, insp... View profile
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8 Comments
Post a CommentDefinitely get them involved, and show them how long you have to work to buy something as well.
good work!
Helpful and informative. Great job.
Good suggestions and advice. Thanks
great ideas
This is so important. As a teacher, I drilled into the kids' heads to save 10% of everything they made.
My sons are great with their $$$ but the one's wife doesn't have a clue how to manage it! Very frustrating for my son. Good info here. :)
Money is the number one subject that should be taught first and given second! Instead of just handing out the cash, this is wonderful advice. cheers :)