Teach Children To Manage Money
You can begin to teach your child to manage money as soon as they begin to receive an allowance. Even children as young as five can learn about budgeting. The earlier you start them on the right track, the better. Here are some tips to get you on your way:
- Use containers to separate your child’s money according to categories – Spending, Saving, Donations, etc. As your child gets older, these decisions can become more inclusive. Also, depending on your family’s beliefs, you may wish to include 10% Tithing, not include donations, etc.
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- Open a Savings Account. This will teach your child about earning interest, about how a bank works and the rewards or saving money.
- Reward your child for saving money. You can provide a type of interest on the amount of money saved. It can come in the form of adding funds to help your child buy a toy they’ve been saving for, or stickers.
- Include math in all you do. Help your child use addition, subtraction, etc. according to their ability when they are managing their money.
- Use websites to keep your child interested in learning more about money. For example, TheMint.org has information for children, parents and teachers.
In order for you to teach your children to manage money, it is imperative that we parents know how to budget our money. I suggest Guide to Family Budgeting because it helps you set up a budget that is easy to stick to and change our thinking about saving and spending. It also provides tips for educating your children.
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Comments
I give my son money from time to time, but have not yet established an allowance. I actually had this as a topic to cover – will have to reference it as a place for people to read.
I want him to learn that doing chores is not necessarily for gratification. It is because it needs to be done.
However, I do like to give him change and have him count it. He is pretty good with math as a first grader and understands money enough to know how much he has. He is not allowed to spend. We are working on his own account which his father and I when we had been married started even before he was born.
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Comment by Nile This is one subject that I am still not sure of even though my children are grown!
Comment by Karen 
Did my comment go through? I will try again – -
Just said how great the tip was about interest and math and asked what you suggest for allowance.
Thanks,
Melissa
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