Helping Children Learn the Value of Money

When you have children, they depend on you to provide them with everything they will need in life. From providing protection and food to teaching them life skills, there is a lot that needs to be done. When it comes to your family's finances, it is important that you are on top of your game, and this is something that every member of the family can participate in. To make sure that you have enough money to get by and money to put into savings as well, it is important that everyone living in your house plays an active role. If you have young children with you while you are shopping for groceries, you can take this time to teach them how to spend money in a smart fashion. With older children, take some time when you are paying bills to explain what you are doing, and how you balance your checkbook. Use every opportunity that you have as an important lesson to teach your children how to survive in the world. When you are dealing with money, it is very important that they understand the meaning of money, and how you have to work for it. When they ask for a new toy, you can explain how you pay for those things, or give them a chance to do chores to earn the toy. You can also teach them about buying things that are on sale, make a game out of using coupons and how to get the best price on things you buy. Even if you are financially well-off, it is important to show children that money does not grow on trees, and spending it wisely will ensure that you can always get what you need. Many times children will learn by example. If your finances are out of control, and you are in severe debt, your children will end up in the same boat if you are not careful. Make sure to handle your money in a responsible manner, even if you have debt to pay off. When you go shopping with your children, they see the things that you buy. If you go on needless shopping sprees often, you are teaching them with your actions to be carefree with their money and their shopping habits in the future. Having children set up a savings account is a good idea. Once they realize the value of money and how to save, you can take them to the bank to open their own account. Many times the bank will make it fun for a child by giving them a little piggy bank or something fun to play with. Allow your child to watch their savings grow, or let them save up for something that they really want. When a child can handle their own money, they are able to get a sense of accomplishment that can raise their self-esteem. While children need to learn about money and handle it properly, it is extremely important that they are not over burdened. Think about your child's personality and age, and make sure that the lessons are appropriate for their level. Do not talk about being in debt or not being able to pay a mortgage, though you can tell them that in order to pay for our house, we need to work. The point is to help your children be financially smart, not scared. Teaching your children personal finances is a life skill that many parents do not do. When a child is not raised with these skills, they can have trouble later in life when they have to manage their own money. Like every other lesson, keep things fun and relaxed, and you will raise a financially smart adult.