subject: Financial Education For Kids Provides Tools For Adulthood [print this page] What are you doing to provide financial education for kids? If parents do not do their job in teaching money management to children, there are lessons being taught by the world that will lead the child to financial ruin. Poor money management skills can leave a child deep in debt by a very young age.
Teaching children money management often begins with a small allowance. For children who are under nine, the allowance should be very small. As the children pass 9, you will want to increase their allowance, but make them responsible for their own entertainment and toys. Giving such responsibility teaches the child the value of saving.
Children learn to live by what they see their parents doing. If you are constantly in debt and living beyond your means, your child will learn this as a way of life. If you make the most of what you have and live within your means, your child will learn this as a way of life.
Look for teachable moments in a child's life. If the child wants an expensive item, use the moment to teach them about the source of money in your life. Let children see you clipping coupons and comparing prices. Teach delayed gratification to your children.
As your child gets older, give them opportunities to earn money. The opportunity may be for bigger chores at home such as mowing the lawn. Eventually, the child may mow or rake leaves for neighbors, have a paper route or even a summer job. Money that has been earned by the child will have more value than money just given to them. The child should be able to decide, within reason, what to do with earned money, but must also learn to live with the consequences.
Teach children the responsibility of giving. If the child's income is limited, he may not be able to give a lot, but this helps to teach the value of cooperation, where many people giving together can make a difference. Many children like to be a part of programs that help children who have less around the world, but there are things that can be done to help a local homeless shelter just as well.
Financial education for kids is often a difficult task. Children need to know that money is a tool that can be very beneficial if used correctly. If money is not used correctly, then it can cause major problems for young adults that follow them for many years in the future. Good training on the proper use of money can help a child to succeed.
