Teaching kids about money is a great way to set them up with a much-needed life skill. If they can learn in your home they will be better off once they leave and go out on their own. Here are five tips on how to teach your kids about money.
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Tips to Teaching Kids about Money
1. Give them an allowance. Giving kids money each week will help them know how to handle it. They can choose to spend their money all in one day or learn how to save. You can decide on if you want to just give them a set amount each week or have it be based on how many chores that they do.
2. Involve them. You should involve your kids in some of the money-related activities that you do. Take them to the ATM or bank with you. Let them see you pay a bill. This will help them see what money is for and how adults normally use it. They will begin to understand more about how you receive money and what you have to do to get it out of the bank.
3. Make a pretend store. Teaching kids about money with a store allows them to really get hands-on with the learning. Have your children walk through and decide what they want to buy. Teach them about how far a certain amount of money can go. Even better if you can use a toy cash register to check them out. If you set this up your children can get a good sense of what it is like to budget their money.
4. Take your kids grocery shopping. If you can, take your kids with you when you do your grocery shopping. Go over the costs of things. Let them hold the coupons and make sure they understand how much you are saving with them.
5. Encourage saving. Saving is an important step when teaching kids about money. Buy them some type of bank or if they are older you can have them open their own account. If they can learning to save they will be much better off when they reach adulthood.
Kids won’t know about money naturally. You have to teach them and let them know how to be good with their money. Your kids will learn from you so it is important that you work hard to explain how money works to them so they can understand. Your children will thank you for that when they are grown.