Teaching Your Kids the Value of a Dollar

Teaching your child about the value in saving money can be a daunting task for the best of us. Saving our hard earned cash is a feat that, even us adults have a problem with. But parents, relax; with a few simple and easy strategy tips, teaching your child about saving can be something you do with authority. A lot of parents have been known to ask where to begin in teaching their children the value of a dollar. At a time when the dollar isn't valued at half what's it actually worth, how do we teach our kids to budget? It's very easy, says Kevin Baskerville, a top online banker with ING. A good starting point is giving your kids a weekly allowance that's $1.00 for every year of their age. Example; if your child is 5 years old, then give them $5.00 per week, remember to give a yearly raise every year on their birthday. A wonderful way to teach them about saving is by showing them that even with such a little amount, it is possible to save some of it for their future.

Children learn by example, so if they see us blowing all the money we earn and not having the money we need for essential items; what are they really learning? Teach them how to be responsible for what they owe and saving for items that they want. Allow them to spend 50% of their allowance on something they want. Or save 50% of it for something they want that costs a little more, with the other 50% always going into a saving account. A good way for your child to save their money is by starting an online savings account. This allows them to save their money and earn a reasonably high interest rate at the same time. They could also consider asking family and friends for gifts of money during the holidays and birthdays, money that could be added to their savings account. Over time this money can add up to a substantial amount. You might also consider allowing them to have their own checking account. This will teach how to be responsible for things that they owe, such as school fees, membership dues on there various activities and any other expenses they might accrue. Of course, when kids are given money the natural reaction is to spend it on the tons of junk they see advertised on television every day, stuff that they feel they must have to fit in with their peers. However, it's our job as parents to keep our kids informed about the dwindling economy and to teach them the shrinking value of the dollar and how important it is that they save for their future. Teach them an alternative way of life and that's its really not necessary to have that junk to be happy or to fit in. Yes, they may want the latest games or electronic gadgets, and as parents we want to give them the best; but they need to be thought to prioritize. if they already have a playstation 3 why spend 300 dollars on an xbox 360?, its really unnecessary. And when it comes to their clothing, teach them that if they buy those nice $20.00 jeans instead of the more expensive ones at $100.00, they'll be able to buy more, not to mention save more money in the long run. As parents its our job to raise responsible kids who think about more than just what they want and how they can get it. Our children need boundaries and priorities, and teaching them how to save is the first step in teaching them whats important in life. For more information on teaching your child about saving visit ww.parents.com.