Financial Responsibility Starts Young!Posted at by ifydcat on category Personal Finance
Fiscal responsibility is a concept that benefits individuals at every stage of life. If you want your children to understand this basic concept and grow into adults who manage their money the right way, start teaching them the basics at a young age.
Start teaching children about money at a young age. Children need to learn that money is more than just an object if they are to one day appreciate it and understand it. If the most basic education surrounding money starts at a young age, children will grasp this concept quicker and benefit from it. Teach your four year old to count coins so they understand the basic math concepts surrounding money. Let your five year old pay for a treat at the mall so they understand how much an item costs. Talk about prices with your children so that they learn that most items are not free. This is a great way to have fun with your children, teach them basic math skills and start down the path toward fiscal responsibility.
Allow your child to earn money. Children should understand that money is not handed out for free. Rather than buying items for your children, give them tasks to perform in order to earn the money they need to buy the item themselves. Ask your child to bring the dishes to the sink to earn enough for a favorite toy. Explain to your child that if they pick up their toys they can earn enough for a treat. If your child wants a larger item, give them weekly chores and provide them with money they can save in order to make that purchase. Your child will gain a sense of pride when the chores are complete and they will learn a lot about money in the process.
Give your child the opportunity to understand the advantages of spend a little and save a little. Children can learn a very important lesson about money at a young age, that they should always strive to make more than they spend. A great way to teach this is to encourage your child to spend some and then put the rest away. Explain that the savings can be used for a larger item that they purchase later, for a special treat on a family vacation or even for college or a car when they are of age.
Make money education fun! Children learn when they play, and it is important to incorporate play into everything that you teach your child. Your child will have an increased sense of understanding surrounding finances and want to learn more if you make the activities fun. Play money related games like Monopoly with older children. With younger children, put a bunch of pennies on the ground and encourage them to count the pennies and put them in their bank as fast as they can. Draw pictures of money, sing songs about money and play computer games that involve money. These are all great ways to get financial messages across in a fun and easy to understand way.
Teach your children about money at an early age. They will learn to understand the importance of money and carry these lessons on as they age. You will help to foster their understanding of and love for fiscal responsibility, and thereby benefit them throughout their lives.