Having money is crucial to obtain some things we need in life, while money is not everything. I like what Suze Orman says “People first, then money, then things.” For kids, learning how to think about money and manage it wisely is an important life skill. As parents, we hope that our children will grow into financially responsible adults and have a secured fanatical future as well.
Financial experts agree that understanding cash, credit, and consumerism is possible, and important, for building a sense of financial responsibility in children. If parents don’t teach money management skills at a young age, usually when the child starts getting an allowance or has a part-time job, money problems may occur, and even lead to the consequences for his or her life-time. Parents should take the time to teach children about money regardless of income and should start when children are young.
In the next several posts we would like to focus on kids and money, talk and discuss some helpful guidelines and suggestions for parents to teach kids about money. We will provide general background and outlines by age group and stage of development children’s understanding and use of money as well as conflicts about money. We also identify activities parents can use to teach children about money, covering earning money, saving money, spending money, and borrowing money. Try to answer some questions, such as “What kind of things should I teach my kids on money?” “How can I teach my kids about money?”