Important Money Management Lessons for Kids

Important Money Management Lessons for Kids

Every Parent is constantly making efforts when it comes to teaching money management, whether they’re aware of it or not. Kids pick up on whether you plan your shopping, put money into savings, or spend irresponsibly.

Money management for kids is also an important factor, try to teach them about money management so they have not to face any difficulties in the future.

You should also take the time to help your children learn how to manage money with specific lessons by providing real-life examples.

1.Start With Physical Currency, Then Teach About Banks

With younger children, physical currency is a great, tangible way to learn about money. Whether you teach them to put their coins in a piggy bank or keep paper money in designated envelopes, handling money demonstrates the basics of money management.

As kids get older, around ages 9 to 12, they are capable of learning about savings accounts and why they’re important.

2. Teach Kids About Saving, Sharing, and Spending with Allowance

Whether allowances are tied to chores is an individual decision for each family. One method that works well is to give kids a flat allowance in exchange for the basics expected of them (like making their beds and feeding household pets) and giving them the opportunity to earn more with bigger chores (like mowing the lawn or handling the family laundry).

3. Help Kids Learn to Comparison Shop

Children in elementary school can understand the basics of comparison shopping. Let kids see you making a shopping list and looking at sales circulars in order to note where certain items cost less.

Take your child grocery shopping with you and show how you compare brands to make your money buy more.

4. Encourage Older Kids to Earn Extra Money

Middle school-age kids may not be eligible to get a traditional job, but that doesn’t mean they don’t have opportunities to earn extra money.