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So it’s finally time to teach kids about money. Your child is starting to ask about buying expensive foods and toys because they don’t understand that money doesn’t grow on trees! It’s your job to educate them.
We’re here to talk about how you can teach your child(ren) all about the value of a dollar. Read on to learn more.
Improve Your Own Money Management Skills
Before you can accurately teach kids about money, you need to make sure that your own money management skills are on point. How good are you at budgeting or saving?
Anyone who’s ever had to go to family mediation over money, or anyone who’s ever hired a financial advisor, is likely on the right track already. If you’ve never had a professional go over your finances, however, you can still help your kids.
Learn about how to invest, how to improve your credit, and how to save money on basic necessities (like groceries). Use this knowledge to help your child.
We recommend educating yourself on money management when your child is still a baby (if not long before) so you can teach them as early as possible.
Consider Giving an Allowance
Giving a child an allowance for chores is controversial in 2022, but we actually recommend it. This isn’t to say that your child should get money for nothing (after all, you buy all of their things), but a child should be able to complete small tasks.
When your child completes a task, reward them with a pre-determined amount of money.
At first, your child will want to spend this money right away. They’ll discover, however, that they don’t have enough to buy the things that they want. This will encourage your child to learn how to save money.
Bonus tip: “Tax” your child.
Many parents think that this is mean, but if you do it the right way, you’re actually benefiting your child long-term.
Let’s say that you take out 20% of your child’s allowance every week. Instead of 10 dollars, they’ll make 8. This will teach them about taxes.
Instead of keeping that money, set it aside in a separate account or jar for the child. When they’re eighteen, give them that money. It won’t be a lot of money, but it will be enough to start a savings account or get a good birthday gift.
Let Them Shop With You
Children don’t understand how much certain items cost. If you’re shopping with your child and they’re complaining about not getting a favorite candy bar or brand-name cereal, let them look at the price with you.
If you’ve already started giving them an allowance, let them see how the item compares to the amount of money that they have. This will give them more perspective.
Teach Kids About Money With These Tips
Teaching kids about money doesn’t have to be difficult. You can teach a child about the value of a dollar simply by paying them an allowance and letting them come with you on shopping trips (as long as you’re tactful).
You can teach kids about money with ease.
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