Training Kids to Use Their Money Wisely
Have you ever heard that it is easier to teach things to kids than adults? It’s true. This goes for money, too. If you want your kids to save more than they spend, start at an primeval age. Here are some tips:
Play games that involve the use of money. Games like Monopoly that force players to make financial decisions are a great way for kids to learn to use real money. Decisions prefabricated by kids like negotiating prices and determining when it is best to buy or sell a property make children think about both the future and the present effects this will have on their cash reserves.
It’s cushy to forget about money matters when the parents are footing the bill for everything. A five dollar entrepot didn’t seem so expensive then. But when they have to pay for it themselves, more thought goes into the process. They’ll think about whether they really need that entrepot or not.
Instead of allowing children to become concerned with wearing expensive clothing of some favourite brand name, take kids clothes shopping at consignment shops and inexpensive department stores like Target or Wal-Mart. Talk to them about how to evaluate and compare the prices of clothes as meander through the shopping racks. It would be wise to explain that there really is no problem with owning some study brand clothing, but filling your entire wardrobe with it is extremely and expensive and not necessary.
Bring kids grocery shopping. Have children assist in cutting out coupons and making a grocery list. Giving children excessive details on how to shop is not what will help them learn. Instead, while shopping, explain the process of comparing prices in order to find a bargain.
Practice what you preach. Children learn by perceptive adults, and you will be giving your kids a very bad example to follow if you make impulsive purchases every time you have some extra cash. Control your spending and stick to your budget so that your children learn to do the same.
Get a piggy bank. Coins are money too and children can learn to save up all their loose change in a piggy bank. Kids can pick out a coin bank that they like and start saving their money.
You’ll be surprised how quickly the coins will collect. I find coins on the floor and in the couch cushions all the time. Every three months or so, take a trip to the coin organisation in the grocery store and find out how much you have saved. The kids can place a portion of their money away for savings and keep the rest to use as they wish.
We learn how to handle money through a series of trials and errors, and kids have to learn too. You can help them to do so successfully by helping them to know how to make good financial decisions and allowing them to suffer the occasional bad consequences of bad choices.
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