MONEY MANAGEMENT FOR KIDS

The very thought of trying to teach children how to be good managers can be overwhelming. As with all other things in parenting, modeling seems to be a top strategy for getting the concept of dealing with money across to the kids.

How do they spend? How do they manage? How to teach kids about money? How do parents show their kids what’s important to them when it comes to the monetary things in life? I once heard a wise man say, “If you want to know what is most important to a person, you need look no further than their spending habits . . . check book . . . bank account!” That would ring true for most of the dads, and the amount spent on housing, food, insurance, would most likely indicate that parents greatly care about the well-being of their families.

Modeling

But, how do parents practically start teaching their children how to manage money? Especially when they are very young and have very little to no money of their own? Perhaps it is truly more about what value in areas other than those that are monetary that show kids how to best manage what they earn or are given.

Kids, Jobs and Budgeting

As children age, in addition to the birthday and holiday monies they may receive, they also may acquire jobs in which they earn their very own pay. It is hard for a young person to fight the urge to spend every cent they have worked for on whatever they want. After all, they earned it, right? But, once again, this is a teachable time to step in for pointing out examples and talking kids through smart ways to manage.

If you have a budget, show it to your adolescent. Point to the times you have wanted something for yourself, but had to wait to purchase until you knew bills were paid, and savings were added to.