Money Tips For Kids

The best education on how to handle money starts at home. Children tend to learn by watching their parents, but there are extra things that you can do to help your kids better grasp onto the concept of money and how to handle it.

1. Allowance

Teach them the benefits and consequences of money by using allowance as the basis. When they want that certain pair of shoes that they don’t need, tell them to save up for it. It’s a great jumping off point for teaching responsibility and showing them the benefits from saving what they earn.

If you have an older child and want to take it to the next step, have them set up a savings account where they can place their money to save. Especially if they have a goal they’re hoping to reach. It’s a great way to teach responsibility.

2. Assign A Payment Plan

This would be much like an allowance, but different. Instead of a lump fee for all the little chores done over the week, assign a fee for each accomplished item. This way they learn the value of work to money rather than just expecting it. If they want to skip dishes one night, that’s fine but they also miss out on $5 (or however much it is you plan to charge for that chore). Then when they come asking for money, give them extra jobs to do to earn it.

3. Start Young

Why can’t you teach the value of money to young children? How much you want to bed a 5 year old wouldn’t enjoy a dollar to buy their favorite candy… earned by helping out mom and/or dad.