In today’s society, media and society bombard kids with various messages about money more than ever. It is extremely important that you, as a parent, talk openly with your child and teach them a positive work ethic, strong financial values and solid money management skills. Teach them the reality of debt and show them how to be wise with credit. Most importantly, teach your kids how to save money.
An allowance can be a great tool to teach children money management and basic economic principles. However, if not implemented correctly an allowance can become a power struggle, if used as a reward and punishment, or let a child assume they can get away without doing chores if they forgo their allowance.
Another way to teach your children about money is to help them start their own business. When I was a kid, my dad had my sister and I sell worms. Although I did not really see the value of this at the time, I have since realized how much we learned by doing this: Supply and demand; customer service; inventory control; working hard, the value of a dollar and so much more! What seemed like a silly waste of time resulted in an end result of three entrepreneurial spirited daughters!
4 Goals for This Week:
1. Identify the purpose of the allowance. Will it only be a reward for chores or does your child need to do chores regardless? Determine how much allowance to pay each child. Your family’s financial situation and your child’s age should be the two main best online casino influences on this decision.
2. Help your child set small financial goals for himself. This can be as simple has helping him identify how much a special toy costs and then helping him figure out how long he will need to save to purchase it.
3. Teach your children to give to charity. What an extraordinary world this would be if we all had the giving hearts of a child!
4. Set up a “Generosity Jar” for a specific cause or charity. Every time your children forgo something extra to give put a slip in the jar that reads how they saved for charity instead of spent money. For example, if they decide to play at the park instead of go to the movies they would have saved about $14 to put in the jar.
* The experts say never sacrifice your own retirement to save for your child’s education.
One way to commit to saving for your child’s education is by keeping every penny they receive for holidays and putting it directly into their account. My husband and I have done this from day one. Our kids don’t miss it now but they will be happy we did this when their student loans are a lot less stressful. The other thing we do is sell their outgrown items at my semi-annual consignment event. All the money they earn also goes into their college fund. This is wonderful because not only do we clear the clutter every six months but if they outgrow an item that was given to them they can still benefit from the gift for the rest of their lives.