Teach kids Good Money Habits

Guide kids to be both financially and socially responsible person by teaching them how to earn money, save money, and spend money. And also help them develop other skills such as setting priorities, making choices, and interacting with others. Parents should promote kids good lifelong money habits by modeling and sharing how we manage money.

Use Money to Teach Math Skills
Money is a very good tool to teach kids math such as adding, subtracting, and sorting.

Use Money to Encourage Earning
Allow kids to earn money for chores or other activities. Let them understand that in order to receive payment, they need to put in personal time and effort.

Use Money to Encourage Saving
Saving is an important part of learning how to manage money. Teach kids that setting aside money today so that it will be there in the future, especially for rainy days is very important.

  • Help little kids to learn about saving by having “piggy” coin banks.
  • Help them set a goal of saving, for example, every toy or other item they ask parents to buy can become the object of a goal.
  • For teenagers, consider opening a savings account for them and working with them to make deposits and keep track of savings as they grow.
  • Explain the concept of earning interest on savings and ask them help calculate the interest and see how money accumulates through the power of compound interest.
  • Help kids learn how to plan and develop patience.
  • Tell teenagers how to build a good credit. The quickest way to a good credit rating is a history of regular, successful savings.

Use Money to Teach Spending Wisely
Tell kids that once they have the savings on target, some portion is available to spend. Money itself should not be a goal. Money is only valuable in terms of what it is used for.

  • Money is love
    Use money to buy a little gift to express love for family and friends. Even the gift does not cost much; it weighs ton by bringing family and friends’ pleasure and happy memories. Tell kids that as a member of a community, and as a citizen in the global society, they have a responsibility to other people. Teaching kids a sense of social ethics includes a sense of sharing and giving.
  • Shop smartly
    For example, teach kids how to spend smarter at the grocery store. Using coupons, shopping sales, comparing unit prices can save money. Spending money can be fun and very productive when spending is well-planned.
  • Avoid waste
    For example, encourage kids to use those papers, which only one side was used, to take a note.
  • Allow kids to make spending decisions
    Kids will learn from their spending decisions whether good or poor. Parents can guide kids by opening discussion on spending pros and cons before more spending takes place.
  • Teach kids about commercial ads
    Teach kids how to evaluate TV, radio, and print commercial ads for products. Sometime, ads exaggerate the products’ advantages and hiding disadvantages. Encourage kids to do their research. Remind them that if something sounds too good to be true, it usually is.
  • Alert teenagers about the danger of borrowing and paying interest
    Use mortgage as an example to illustrate how expensive the loan costs.
  • Teach teenagers how credit cards work
    For example, when using a credit card at a restaurant, explain to kids how to verify the charges and how to calculate the tip. Remind kids need be very carefully to guard against credit card fraud when shop online. Stress that using credit cards for cash advances only for emergencies.

Using Money to Teach Management
Keeping good records of money saved and spent is another important skill kids need to learn.

Use Money to Build Social Skills
Using money involves many social skills by interacting with others. Tell kids that when speaking with salespeople need to follow social rules that go along with making a purchase. Building social skills is a big part of using money in everyday life.

To learn more parenting skills, please refer to Happy Child Guide, My Out-of-control Teen and great parenting books.

3 thoughts on “Teach kids Good Money Habits

  1. 儿童和少年要学会正确用钱的原则,即应该花的钱可以花,不应该花的钱一分钱也不要乱花,要学会积零钱成整,去买个有用的东西.

    [english]
    Children and adolescents should learn how to use money correctly; the principle is that to spend money when only should spend, do not spend a penny when should not spend. Learn how to save changes into the whole plot, to buy a useful item.
    [/english]
    [japanese]
    青少年は正しくお金の使い方法を学ぶべきです。原則として、必要のときだけお金を使う、必要ではないときに一円も無駄にならないように。小さいお金を貯めて、必要なものを買います。
    [/japanese]

  2. 市场中人的交易关系是很复杂的,孩子只能去买些小东西,做些简单的交易,以防上当受骗!

    [english]
    Trading relationship in a market is very complex; children can only buy some small items using simple transactions, to prevent from being deceived!
    [/english]
    [japanese]
    市場の取引関係は非常に複雑ですので、だまされるのを防ぐために、子供は小さい物を買ったり、簡単な取引を行うことしかできないです!
    [/japanese]

  3. 是的,社会复杂,父母要帮助孩子一点点成长。

    [english]
    Yes, the society is complicated; parents should help children grow a little by little.
    [/english]
    [japanese]
    そうですね。社会は複雑ですので、親は、子供たちの成長を少しずつ手伝います。
    [/japanese]

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