Money plays an important role in our everyday life. Parents should teach kids about money. Educate and help kids to understand money values and help them build good money habits. A solid money education is one of the best tools we can give our kids. It will help them the rest of their lives. The following are some suggestions to help parents to educate kids on money.
- Teach kids about money as soon as they can count
Long before most kids can add or subtract, they become aware of the concept of money. A 2-year-old knows that in order to buy ice cream he or she needs money in a supermarket. It’s important to work on the kids’ financial awareness as early as possible, because once they become teenagers, they are less likely to listen to and consider parents’ advice.
- Teach kids how money works
Kids need to know how money works, the basic ins and outs of a family economy. Tell kids that money comes from parents’ hard working. We use money to pay bills. As they get older, we can teach them about credit cards, bank interest, and so on.
- Teach Kids about Money and Help kids learn the differences between needs and wants
This will prepare them for making good spending decisions. It is important to meet the kids’ needs, while to guide them to set their needs apart from their wants.
- Teach Kids about Money Using an allowance as a teaching tool
Giving kids an allowance is one good way to help them understand the value of money. Guide them on money saving, spending using the allowance.
- Teach teenagers on checking accounts, credit cards, and debt
Teenagers and college-age kids have bigger responsibilities, prepare for their independence.
- Teach teenagers about investing
High school kids can and should be taught about the risk of market.
- Teach Kids about Money by Establishing a regular schedule for family discussions about finances
With teenagers, it is useful to discuss what’s happening with the national and local economies, and then discuss how to economize at home, and alternatives to spending money. Parents should disclose information and provide guidance that is consistent with our values and beliefs. It is often better at providing information about the facts of life than just talking about what matters more.
- Get support from family members and friends
It easier and efficient to teach kids values when get the support and guidance from family and friends.
- Let kids learn right from wrong
Parents do not feel disappointed and frustrated, if the kid sometimes behaves in a way that differs from our standards, as long as he or she does not do it regularly. Although bad behavior needs to be recognized and dealt with, kids will learn from their failed experience.
To learn more about Teach Kids about Money and parenting skills, please refer to great parenting books.