A child’s early years lay the foundation for all that is to come, so it’s important to teach them how to deal with money. Spending mindfully is essential for kids to be able to spend money wisely, without being impulsive or careless. There are a few simple methods to teach young children how to save money and to spend their money carefully.
Start a Money Jar
Starting a money jar is a visual method to show your kids how savings grow little by little. The money jar should be clear so that kids can see it fill up slowly. They understand that little savings finally add up to a lot. The kids should save something from their daily allowance, or gifts from friends and relatives. The jar should only be emptied on specific occasions, or when it is full. This rule keeps kids from saving and then spending the money whenever they have a desire for something.
Let Your Kids Earn Commissions
As a parent, you are obligated to feed, clothe, shelter, and educate your kids. No matter how much money you have, you should be careful not to spoil your kids. If your kids need extra money, above their normal allowance, then they should earn commissions by doing minor chores. These chores can include house chores, mowing lawns, cleaning pools, or helping out at charity centers. Commissions on chores teaches your kids the value of hard work. They are likely to respect their hard earned money more than when you freely give it to them.
Teach Your Kids How to Shop
Once your kids have saved enough money, then you need to take them shopping. You can ask your kids what they want to buy with their money. This will give them the idea of carefully thinking out how they want to spend their savings. You need to give your child the money, and let them make a choice in what they buy, whether its toys, video games, clothing, or jewelry. Kids need to understand that money cannot buy everything. Your kids need to learn to prioritize their spending habits.
Teaching kids at an early age the value of saving, and spending, money wisely will ensure they develop a healthy relationship with money at an early stage. Money lessons teach kids that money should be used to create wealth, and future incomes.
As a Business Banking Professional, Kim helps businesses providing commercial loans specifically meant to provide a business with the capital needed to start-up or expand. In her role, she interacts with entrepreneurs and business owners concerning future financial investments in an effort to help the business find the strategies that would work for them.
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