5 Simple Ways To Teach Kids About Money | News

I was lucky to grow up in a home where my siblings and I learned good financial habits (would you really expect anything else from Dave Ramsey’s family?). And even though I haven’t always love lessons on saving and budgeting as a child, this knowledge has allowed me to succeed as an adult.

Unfortunately, far too many children today are missing out on the value of financial education, and far too many adults still struggle with the basics of money. But the good news is that you can start teaching your kids about money today with these five simple tips.

1. Give them a job

It is so important to teach your children the value of hard work from an early age. Work is good for them and helps them develop many important skills, such as responsibility and teamwork. And it is essential for them to learn that money is not free: it must be earned.

So, instead of offering them an allowance for simply existing, try paying them a commission for every task they perform around the house. If you really want to teach patience, you could give them their “paycheck” once a week or every two weeks, just like in the real world. That way, they’re still rewarded, but they’ve worked hard for it and learned about delayed gratification in the process. And of course, these jobs need to be age-appropriate (we don’t need 5-year-olds trying to iron their own clothes here).

2. Prioritize

Kids will learn a ton about money management just by watching you. When you and your spouse make giving a habit, your kids will too. Whether it’s paying tithing at church, donating money to the homeless community, or picking up groceries for a struggling neighbor, let your kids see and even participate in these acts of generosity. This will build character and a healthy attitude towards money that will stay with them well into adulthood.

3. Show them how to save

A simple way to help your kids practice saving is to get them started on the envelope system. All you need are three envelopes labeled Give, Save, and Spend. Each time they earn or receive money, ask them to divide it and put some of it in their Giving Envelope first. Then some of it goes into their save envelope, and the rest can go into their spending envelope so they can use it to buy the things they want.

4. Invite them to your budget meeting

This one depends on what works for you and your family, but if your kids are a bit older and able to figure out what’s going on, consider letting them attend your monthly budget meeting with your spouse. It’s a great way for them to see how budgeting works and learn that everything they have (including food and electricity) has a price you need to plan ahead.

And if you and your spouse don’t currently have a regular budget meeting where you take the time to plan where every dollar of your income goes each month, there’s no shame here, it’s never too late to to start ! Budgeting really is the best way to take control of your money.

5. Let them make mistakes

Kids are kids, and that means they’re going to make mistakes. And sometimes you just have to leave them so they can learn from it. I will never forget the time I went to a theme park with my family when I was young and spent all my money on a carnival game that I kept playing, in the hope of winning (I lost every time). I begged my dad for more money so I could keep playing, but he kindly and firmly said, “Rachel, when the money is gone, it’s gone.

I didn’t like it at the time, but it taught me an important lesson about how things work in the real world. Your children can make similar mistakes with money, but when you let them suffer the consequences, within reason, they will learn and grow much more than if you fixed everything for them.

I hope these tips will help you prepare your children for long-term success with money. You have this! For more tips on showing your kids the value of money and hard work, check out This article.

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