Ways to Teach our Children Good Money Management Skills

This wonderful post was submitted by a “Raining Hot Writer” (read more about how you can write a frugal and helpful article and get paid for it here). Thanks, Bobbie….I love all these unique ways to help Children learn about money!
Enjoy…
We strive to be wise with our money and practice it in many ways. However, sometimes we fall short in helping our children learn the wisdom of our ways.  Yes, they learn by example, but there are also practical ways to teach them.  Here are just a few examples that you may want to implement into your own lives.
1. Instead of giving them a general set allowance each week,  create a set amount of money for each chore that they complete in the week.  You decide what their minimum chores would be for the week and also what their minimum allowance would be as well. You also decide what their maximum chores would add up to as well.  This teaches children the pride of earning their cash per chore rather than earning a set amount no matter how little or much they do in the week.
2. When they have a birthday or receive money of any kind you can teach them the importance of savings by allowing a certain percentage to always go to their savings account at the bank, no questions asked. If you are trying to teach them the importance of 10% tithing , you could in addition, set aside that amount to drop into the offering plate on Sunday.  Show them the balance of their savings account each time to get them excited to see their money growing.  Give them goals on what they would like to purchase with their savings.
3. Instead of giving material gifts, how about the gift of a savings bond?   Children may not appreciate this in their younger years, but when they are older, they will thank you ten-fold and teach them the valuable lesson of patience with watching money grow.  You could even ask your children if they would like to buy a savings bond from the money they have in their savings account.  The possibilities are endless.
4. When going to an big event such as the Circus, be specific with your children on the amounts you would like to spend and stick to that. This teaches them the value of items as well as teaches them not to spend on demand and foolishly.  Teach them good habits and a healthy awareness.
And who knows your children may be stock-brokers by the time they reach age 3… wishful thinking I know.
Happy Frugal Parenting!
Image by Timeout Kids.

Comments

  1. My parents did this. They would give me a certain amount of money for every chore. And when it came to gifts, they would buy me my birthday presents and christmas presents. But would put saving bonds in my easter basket and along with my valentines day gifts. They would buy these in small amounts and when i was getting 2-4 a year, now they have really started to add up! 🙂

  2. Great article! We have just adopted “don’t do for children what children can do for themselves” at our house, and I feel like money management goes right along with things like chores, getting oneself dressed, etc. Involving children in what you are already doing makes them feel like a part of the family, and that is what every child truly wants: to belong.

  3. Great article. Another great way you can also contribute is to open what is called a 529 Plan is the best way to save for your kid’s college. 529 plans — aka college-savings plans — allow you, a relative or a friend to put money aside as an investment for a child’s college education. The money grows tax free and is spent tax free for eligible college expenses such as tuition, books and fees.

  4. Great idea! I love anything that can help me teach my kid values (of any kind)!

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