How You Can Introduce Money To Kids

Money gives people -both young and old -decision making opportunities. When you educate and motivate children to become regular savers, it enables them to keep more of the money they earn and do more with the money they spend. Everyday spend decisions can have a far more negative Impact on children's financial futures than any investment decisions they will ever make. So I have come up with

6 simple ways to help educate children about personal finance and managing money:

1. As soon as children can count, introduce them to money. Take an active role in providing them with information and there are two important ways children can learn about money- by observation and repetition.

2. Communicate with children by helping them learn them the differences between needs, wants, wishes and how to save and increase their money. This will prepare them for making good spending decisions in the future.

3. Setting goals is fundamental to learning the value of money and saving. Young or old, people rarely reach goals they haven’t set. Nearly every toy or other item children ask their parents to buy them can become the object of a goal-setting session. Such goal-setting helps children learn to become responsible for themselves.

4. When giving children an allowance, give them the money in denominations that encourage saving. If the amount is $100 dollars, break it down into 20’s or 10’s and encourage to at least set aside one portion in savings. REMEMBER, don’t refuse them when they want to withdraw a portion of their savings for a purchase–This may discourage them from saving at all

5. Keeping good records of money saved, invested, or spent is another important skill young people must learn. To make it easy, let them have a fancy journal that has side pockets and Children can place receipts from all purchases inside their journal and keep notes on what they do with their money

6. Establish a regular schedule for family discussions about finances. This is especially helpful to younger children–it can be the time when they tote up their savings and receive interest. Other discussion topics should include the difference between cash, checks, and credit cards; wise spending habits; how to avoid the use of credit; and the advantages of saving and investment growth. With teenagers, it’s also useful to discuss what’s happening with the economy, how to economize at home, and alternatives to spending money. All of this information will be important as they take on more responsibility for their own financial well-being.

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