Start Teaching Your Kids about Money

by Debbie Vasen | More from this Blogger

24 Aug 2007 01:45 PM

There is never a bad time to start teaching your kids about money. The best approach is to make it a part of their life, just as it a part of yours.

Money makes the world go round... or so some people feel. Whatever your thoughts are on money, it plays an integral role in most everything we do. Therefore, the best way to teach kids about finances is to include them.

Start first with a piggy bank. Even young kids love the sound of coins dropping in the slot. Then move on to using money for math lessons and history lessons. Discussing the amounts and designs on our county's currency is a natural way to learn.

As your children grow, continue to include them in your money matters. Let them do a budget with you. Take them to the bank. Allow them to sit and help you pay your bills. Show them how taxes work.

While all of this may sound simple, it is often not done in a family. Children are usually kept out of money management and financial discussions. Why? Is there some parental fears? Is it too much of a hassle?

As with everything in your child's life, it is important to be age appropriate. There is no reason to scare your children that you can't provide for their basic needs. But, it doesn't hurt to explain to them exactly why you can't buy something for them, instead of just saying no.

Even though many families are looking for a quick system to teach their kids about money, really the best method is through example. Include your kids in your money management methods. Help them understand how taxes work and what services that money funds. Explain interest rates and savings or investments as they become older. Let them see the bills, explain how much the electricity is and how that amount can change if the light is left on. Incorporating a grasp for the value of money is a key lesson that your kids will carry on with them for the rest of their lives.

Related Articles:

*Should We Force Our Kids to Save?

*Teens Saving Money

*An Allowance Chart and Buying Candy!

Learn more about Debbie Vasen

Debbie Vasen is a published web content editor and writer, as well as a freelance writer for various print publications. In addition to blogging at Families.

View Full Profile | More from this Blogger

sm_micek (12) 25 Aug 2007 11:04 PM

The best possible way to teach your kids about money is to take the above comment and add this to it: Do NOT give your kids credit cards. Credit cards will not help credit enough to amount to anything, and they will not help your kids to manage their money. If your kids want to buy something, they should save money until they can afford it. Also, have them start an emergency fund as soon as possible. Put money away in a savings account and don't touch it unless you absolutely have to.

For those that want to make a considerable income online Click Here.

Debbie Vasen (1072) 27 Aug 2007 03:25 PM

Thanks for the good advice about kids and credit. I absolutely agree! It is best to teach kids to save before they are ever offered the concept of borrow. This includes credit cards or even borrowing from their allowances.

Once your kids do have a savings system set. It can be beneficial to start teaching credit slowly. Let your kids borrow from you as an example. Teach them the importance of paying back their debts and budgeting. If you don't address it before they turn 18 and those credit card companies jump all over them... it is too late!