You’re driving home and the kids ask for fast food. At the grocery store, they want snacks and at the mall, they beg for toys. Rather than lose your patience – and your wallet – make a plan to educate your kids about financial management.
- Use an allowance. For example, start with $10-$20 every two weeks. Explain their allowance is to spend on those extra things they want, and once their allowance is gone, they’re out of funds until the next two weeks. This will let them know their funds are limited.
- If your child is old enough to earn money, pay them to mow the lawn, walk the dog or help with the laundry.
- Explain the difference between a want and a need, and how to prioritize purchases. As they begin to spend their allowance, they’ll learn to make smarter decisions. A $3 mobile game or a new $3 pen for school?
- Encourage your child to save. Cash gifts and babysitting pay will add up in a savings account. They’ll see the efforts are rewarding.
- You can also help explain how credit/debit cards work since they are probably used to seeing you use them. Get creative and make a “mom bank” credit card and set an allowance limit.
- Last, make it fun! If your child is too young to have real money, find play money at toy stores or dollar stores to teach them.
Apply the ideas you find beneficial and watch your kids make smart decisions with their money. You’ll also be giving them an opportunity at a rewarding financial future.
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