Money management is a hard skill to learn at any age, but the earlier you teach your children, the better off they’ll be. It’s a great way to instill responsibility and awareness at a young age. We’ve compiled a few tips that will help you come up with a plan that will work in your home!
Teach them to wait
You can’t always buy something when you want to. You know the old saying, ‘Money doesn’t grow on trees,’ or in other terms, you can’t buy everything all the time. When you walk into a store, know your mission. You’re buying a gift for a friend, not for yourself. This will teach your children that every time they walk into a store, they don’t have to get something.
Give them money to manage
But also make them earn it. Whether that’s in the form of an allowance, or you assign dollar amounts to certain chores, let your kids earn their own money. This will make them more careful about spending. If they have $5 and want to buy two candy bars, they could run out of money. Then what? This will put money management into perspective.
Help them set and reach goals
Is there something they really want? Do they want an iPod or a new pair of sneakers? Talk about how they can reach those goals. If the shoes are $50, what chores do they need to do to reach their goal? They may get sidelines by jewelry or fidget spinners, but that takes them away from their major goal. How will that make them feel?
Teach them about price comparison
Not all products need to be brand name. And not all brand names cost the same across different stores. Teach your children to research the best possible prices for what they want.
Use pre-paid gift cards to teach teens about credit
Credit cards can be tricky. It’s an easy way to rack up debt, but they’re necessary to build credit. So how do you teach kids about credit? Buy them a pre-paid gift card. Whatever they spend, they have to pay back. You can reload it monthly and track your balance online!