Thursday, October 27, 2011

The Most Effective Strategies To Teach Children Money Today

By Tisha Walsh


Children can learn logical principles from the early age of only four. By the young age of seven, they are very capable of solving completely complex problems and have the ability to relate to the feelings of others. Teaching children about money can benefit them by teaching them more than just how to purchase things that they want; it can teach them responsibility.

Many children receive birthday money and it is often a large source of their income. This is a good opportunity to teach them about saving money. Instead of buying items for them between holidays, allow them to save for them and purchase them. They will be excited and proud when they take the trip to buy the desired item because it will have been earned.

Christmas lists for parents are often a difficult time financially because many times children do not understand that there are limits in this case. If Santa is still in the picture then allow the child to place the most important items on this list, requesting that they limit them as he is very busy. Then provide them with a budget for the parents list. Tell them to choose whatever they like as long as it stays within the budgeted amount. This is a great way to teach kids about money. This allows the child to realize that items do have a price and they learn to scrutinize their own selections.

Encouraging children to save even pennies is important when teaching them about money. Offer to match whatever amount they are able to save and it will encourage them further. This works well for young children who do not receive an allowance and want to purchase toys.

An allowance is a good way to teach children that money needs to be earned and it should be started fairly early. They can be assigned particular tasks on a list to be done daily. As long as the tasks are completed they can be paid either daily or weekly for their efforts.

Allowing children to visit the office is also a great idea. Whatever type of work is involved it is important that they know their parents are not just playing games while they attend school. It will become real to them that life transitions into working for everyone.

Teaching kids about money should be interesting for kids. Try and make it fun so they will enjoy learning about money.




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