Monday, 29 October 2012

Teaching Kids How to Save Money

Everyone needs to take a moment in their busy schedule to sit down and teach your child about money management. You don’t want your child one day coming up to you asking you for help to pay off credit card debt or having to rely on your money because they are not financially educated to do so. You want to make sure you take all the necessary steps to inform your child the do’s and don’s about spending money.
It is very important to teach your child about money, if you have a negative view on finances it more then likely that your child will have a negative view. If your child hears you talking about money negatively they will automatically view money in a negative light. Thus, your child will not be motivated in searching for a job or viewing work as bad thing. You need to make sure you put a positive spin on money. Showing positive emotions and discussions about money will give your child an opportunity to look at money in a positive light and will understand that money is not a burden of bad news.
Another great tip is creating a chore list. This will help introduce your child’s value of money, responsibility, saving, and profit. Your child will learn that money is just not given to them; they have to earn it, learn to save part of it, and learn how to spend it on what they really need not on impulse. When it comes time to buy something your child will appreciate what they have bought themselves and will take better care for it. They will have a sense of pride that they have accomplished something them self.
There will come a time when you will be at the store with your child, and she/he will ask you for something. I want you to say, “No” this will be the perfect opportunity to show that not every trip to the store will result in “getting something”. Instead you can take advantage of the situation. Make your child do some extra chore around the house, if she/he will complete that chore, then go head and bye that toy or piece of clothing they wanted. This shows them the responsibly of working for what he/she wants.
Once your child gets older, lets say early teens; I would recommend you showing him/her your bills. This will help your child get a sense of cost of living. They will understand how much it may cost them once they live on their own. A good example for you to use, is grocery shopping. Take your teenager grocery shopping with you. Make sure you make a budget and list of what food items you need. Most teens are not aware of how much you spend on house hold food items per month. Show them what you really buy like basic food staples. This will teach your teen that snacks and soda is not a necessity and the budget will help your teen not to splurge on unnecessary items. Your teenager will be taught they have limits.
In the end, kids need to be educated on money management no matter what. No one but you as a parent will do so. If this is something that you may not have time for then put your child’s best interest at heart and  invest in a money management class so he/she will have the skills for his/her future of tomorrow. 

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