7 Simple Strategies to Teach Your Kids About Money
With all of the issues related to money that young adults face today, it's more important than ever to raise money smart kids. However, if you are like many parents, you may be a little baffled about where to start and what to do. Here are 7 simple strategies to get you started:
1. Talk to your kids about money. It may not always be comfortable to talk to your kids about money but it is important. Take advantage of opportunities as they arise in everyday life to discuss how you make money decisions and then set aside a specific time each week or at least monthly for more in depth family discussions.
2. Start money lessons early. Kids can generally understand basic money concepts like spending, saving and earning as soon as they learn to count, around age 4 or 5. Once they are in school, they are ready for more complex concepts like borrowing (debt) and investing.
3. Encourage your kids to set money goals. Teach them the elements of goal setting using the 5-step ‘SMART’ system: (1) be specific or pin point exactly what you are going after; (2) make goals measurable so you can track your progress; (3) make them achievable so success is possible; (4) record or write them down along with the steps to be successful and read them every day to keep moving forward; and, (5) set a time frame to complete them so they don’t become ‘someday’ goals that may or may not happen.
4. Teach your kids how to spend. This may sound a little strange but kids need to understand how to make buying decisions. Use everyday occurrences like going to the grocery store so they can begin to understand what things cost and why you choose one brand over another. Read sales papers and plan purchases based on the ads. Talk to them about quality, price, sales and bargains, and show them the steps you go through to make buying decisions for large purchases like appliances and cars.
5. Provide structure for your kids to grow their skills. Make it easy for them to develop budgets and save money on a consistent basis. Help them set up their own accounts and keep records, or you become the banker, providing everything from checking to savings and loans with interest. Also, give them their allowance in denominations that encourage them not spend it all in one place. For example, if you give your kids a $5 allowance, give it to them in $1 bills so that they can easily divide it into different categories like saving, spending and charity.
6. Give your kids the opportunity to test their skills. I know this can be difficult to do watch, but kids need to exercise their money muscles. They need to learn to make choices and to deal with the consequences if they make mistakes. Remember, you may not really be helping them in the long run if you constantly bail them out, so unless it is an urgent situation, let them deal with it.
1. Talk to your kids about money. It may not always be comfortable to talk to your kids about money but it is important. Take advantage of opportunities as they arise in everyday life to discuss how you make money decisions and then set aside a specific time each week or at least monthly for more in depth family discussions.
2. Start money lessons early. Kids can generally understand basic money concepts like spending, saving and earning as soon as they learn to count, around age 4 or 5. Once they are in school, they are ready for more complex concepts like borrowing (debt) and investing.
3. Encourage your kids to set money goals. Teach them the elements of goal setting using the 5-step ‘SMART’ system: (1) be specific or pin point exactly what you are going after; (2) make goals measurable so you can track your progress; (3) make them achievable so success is possible; (4) record or write them down along with the steps to be successful and read them every day to keep moving forward; and, (5) set a time frame to complete them so they don’t become ‘someday’ goals that may or may not happen.
4. Teach your kids how to spend. This may sound a little strange but kids need to understand how to make buying decisions. Use everyday occurrences like going to the grocery store so they can begin to understand what things cost and why you choose one brand over another. Read sales papers and plan purchases based on the ads. Talk to them about quality, price, sales and bargains, and show them the steps you go through to make buying decisions for large purchases like appliances and cars.
5. Provide structure for your kids to grow their skills. Make it easy for them to develop budgets and save money on a consistent basis. Help them set up their own accounts and keep records, or you become the banker, providing everything from checking to savings and loans with interest. Also, give them their allowance in denominations that encourage them not spend it all in one place. For example, if you give your kids a $5 allowance, give it to them in $1 bills so that they can easily divide it into different categories like saving, spending and charity.
6. Give your kids the opportunity to test their skills. I know this can be difficult to do watch, but kids need to exercise their money muscles. They need to learn to make choices and to deal with the consequences if they make mistakes. Remember, you may not really be helping them in the long run if you constantly bail them out, so unless it is an urgent situation, let them deal with it.
With all of the issues related to money that young adults face today, it's more important than ever to raise money smart kids. However, if you are like many parents, you may be a little baffled about where to start and what to do. Here are 7 simple strategies to get you started:
1. Talk to your kids about money. It may not always be comfortable to talk to your kids about money but it is important. Take advantage of opportunities as they arise in everyday life to discuss how you make money decisions and then set aside a specific time each week or at least monthly for more in depth family discussions.
2. Start money lessons early. Kids can generally understand basic money concepts like spending, saving and earning as soon as they learn to count, around age 4 or 5. Once they are in school, they are ready for more complex concepts like borrowing (debt) and investing.
3. Encourage your kids to set money goals. Teach them the elements of goal setting using the 5-step ‘SMART’ system: (1) be specific or pin point exactly what you are going after; (2) make goals measurable so you can track your progress; (3) make them achievable so success is possible; (4) record or write them down along with the steps to be successful and read them every day to keep moving forward; and, (5) set a time frame to complete them so they don’t become ‘someday’ goals that may or may not happen.
4. Teach your kids how to spend. This may sound a little strange but kids need to understand how to make buying decisions. Use everyday occurrences like going to the grocery store so they can begin to understand what things cost and why you choose one brand over another. Read sales papers and plan purchases based on the ads. Talk to them about quality, price, sales and bargains, and show them the steps you go through to make buying decisions for large purchases like appliances and cars.
5. Provide structure for your kids to grow their skills. Make it easy for them to develop budgets and save money on a consistent basis. Help them set up their own accounts and keep records, or you become the banker, providing everything from checking to savings and loans with interest. Also, give them their allowance in denominations that encourage them not spend it all in one place. For example, if you give your kids a $5 allowance, give it to them in $1 bills so that they can easily divide it into different categories like saving, spending and charity.
6. Give your kids the opportunity to test their skills. I know this can be difficult to do watch, but kids need to exercise their money muscles. They need to learn to make choices and to deal with the consequences if they make mistakes. Remember, you may not really be helping them in the long run if you constantly bail them out, so unless it is an urgent situation, let them deal with it.
1. Talk to your kids about money. It may not always be comfortable to talk to your kids about money but it is important. Take advantage of opportunities as they arise in everyday life to discuss how you make money decisions and then set aside a specific time each week or at least monthly for more in depth family discussions.
2. Start money lessons early. Kids can generally understand basic money concepts like spending, saving and earning as soon as they learn to count, around age 4 or 5. Once they are in school, they are ready for more complex concepts like borrowing (debt) and investing.
3. Encourage your kids to set money goals. Teach them the elements of goal setting using the 5-step ‘SMART’ system: (1) be specific or pin point exactly what you are going after; (2) make goals measurable so you can track your progress; (3) make them achievable so success is possible; (4) record or write them down along with the steps to be successful and read them every day to keep moving forward; and, (5) set a time frame to complete them so they don’t become ‘someday’ goals that may or may not happen.
4. Teach your kids how to spend. This may sound a little strange but kids need to understand how to make buying decisions. Use everyday occurrences like going to the grocery store so they can begin to understand what things cost and why you choose one brand over another. Read sales papers and plan purchases based on the ads. Talk to them about quality, price, sales and bargains, and show them the steps you go through to make buying decisions for large purchases like appliances and cars.
5. Provide structure for your kids to grow their skills. Make it easy for them to develop budgets and save money on a consistent basis. Help them set up their own accounts and keep records, or you become the banker, providing everything from checking to savings and loans with interest. Also, give them their allowance in denominations that encourage them not spend it all in one place. For example, if you give your kids a $5 allowance, give it to them in $1 bills so that they can easily divide it into different categories like saving, spending and charity.
6. Give your kids the opportunity to test their skills. I know this can be difficult to do watch, but kids need to exercise their money muscles. They need to learn to make choices and to deal with the consequences if they make mistakes. Remember, you may not really be helping them in the long run if you constantly bail them out, so unless it is an urgent situation, let them deal with it.
posted by zzzzzzzzzzz at
2:56 AM
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