3 Tips for Teaching Your Kids How to Manage Money

Save MoneyIt’s really easy to get into debt. It can really happen before you even know what happened and what got you there. After being in debt myself and having to work my way out of it, I’ve decided there’s absolutely no way I’m going to let any of my children go out into the world on their own without any sense of money management. This is something I unfortunately I had to learn on my own after it was a bit too late. I’m going to give my kids this guidance, so they hopefully don’t fall into the same traps that I fell in.

Below, I’m going to list out some tips for you to follow that will help you teach your children how to manage money at a very early age. You can even begin teaching them when they’re still a toddler.

#1. Tell Them “No.”

It’s a parent’s nightmare when you go shopping with your kids, but it doesn’t have to be. I can’t tell you how many times I walk through the grocery store and see children throwing temper tantrums, because they didn’t get what they want. Unfortunately, a lot of the time, the parent will give in. That’s the worst thing you can do.

Store owners are smart and will put things near the checkout to catch the attention of your children. When your kids start showing interest in those things, you should try to get their attention on something else. If you can get your children to not expect a new toy or trinket every time you go to the grocery store it will make your shopping experiences much easier and quicker.

If your children behaved themselves while in the store, you could occasionally get them something from the quarter machine on the way out. Only do this to reward outstanding behavior.

#2. Teach Them That They Have to Earn Their Money

Ever had your child come up to you and want some change for something or another? This is your chance to teach them that they have to earn their money, so you can present them with ways to earn it. For instance, you could let them sweep the floor or fold some towels for a little bit of pocket change.

I would suggest maybe setting up a calendar in your home with a list of chores your children can do. Maybe even list some of the chores as money-making opportunities while other chores are required, because everyone should contribute to the house in some way or another.

#3. Teach Them to Spend Their Money Wisely

They have to learn that money doesn’t grow on trees and that they should save up money for whatever they want. Therefore, when given money for birthdays or what not, you should save some for them and let them understand why you’re doing it for them. Give them some to spend freely on whatever they want and save some of the other money.

Also, put a portion of the money into their school activities. For instance, if your son is a football player, some of his birthday money should go to his gear. That way, your kids will know what it’s like to have to pay to do certain activities. It will prepare them for later in life when they have to pay bills.