Teach Your Child About Finances

As with anything you do as a parent, your children are going to learn their spending habits from you. You are responsible for teaching them how to manage their money, and they will use what you teach them for the rest of their life. So how can you teach them to manage their money wisely?

1. Make Them Work

No one legally gets money without working. This is a lesson that every child needs to learn very quickly. I don’t mean that they have to earn every dime as a small child. But at a very young age, they should be given small chores to do in exchange for some spending money. Not only will they enjoy getting the money (small children love it!), but it makes them feel grown up and teaches them responsibility.

2. Make Them Wait

Children are very impulsive, and they want to buy things right when they see them. You must teach your children to wait before buying, or they will continue to be impulsive buyers even as adults. Make your children wait a week or two before they buy that big-ticket item. Help them understand that there will always be something to buy, but that they have a limited amount of money.

3. Teach Them To Give

Teach your kids that it is not always about them. Sure, they worked hard for their money, and they have every right to spend it any way they want. But teach them (and show them) the joy and responsibility of giving. Don’t make them give all they have earned – just a small part will do. But let them choose who they want to give to. Help them understand that there are always less fortunate people who sometimes need a helping hand.