The following is a guest post…
Children sometimes don’t learn the value of a dollar until they are older or until they are teenagers. They ask parents for money for toys, clothes and other items because their parents have purchased these things from the time they were little. There are some fun ways to teach your child financial lessons.
If your children see you using a piece of plastic to make purchases, then they will likely think that all they have to do is use a card as well. This can lead to debt problems later in life if the child does not understand the concept of paying money back that is used on the credit card. Show your children what money looks like, and explain the value of each bill. When you pay for something at the store, let your child see you hand the cashier a larger bill and receive change.
Most children like to hear the tinkling sound that money makes in a piggy bank. However, there is a new type of piggy bank that you can get for your children that has divisions for savings, spending, donating and investing. This will help your child see where the money goes after it is put in the bank. When the child receives money, help the child determine how much should go into each slot.
Technology plays a big part in education today. Your child probably knows how to get on the Internet, so find some games that help with money identification as well as how to spend money. There are games for all ages from preschool to upper elementary. The fun characters will keep the child’s attention, and there are numerous activities that the child can do to help with school work. When they get older, you can teach them how to budget their money by using online programs. They can keep track of finances from all bank accounts and set financial goals, all easily organized online.
Most banks have an account that you can set up for your child. This is like a checking account that adults have, but the child is responsible for it to an extent. You can help your children write checks for purchases as well as help the child make deposits in the account. Having a personal picture on a check can make using checks more fun and personal for your children. You can order personalized checks by visiting http://www.checks-superstore.com/. Using checks is a great way for teaching them how to keep a good record of their finances as well.
In order for your child to learn the concept of earning money instead of getting money for doing nothing, then set up a chore chart, and give an allowance for the chores completed. If the child does not do the chore, then the child does not receive money. They will learn to appreciate the value of money when they see what they are earning, and what they can buy with that amount. It can help give them the incentive to save and work harder for a special item they may want.
There are several ways to teach children how to manage money. You can incorporate games as well as real-life situations. Don’t let your child have too much responsibility, but make sure the child understands the basic concept of spending and saving. As they get older, make sure they are given responsibility over their finances with your supervision.