Facebook Twitter Instagram
    Facebook Twitter Instagram Pinterest YouTube RSS
    Real Momma
    • Entertainment
      1. Wine
      2. Movies
      3. Books
      4. Sports
      5. Fashion
      Featured

      Quick and Easy West Coast Road Trip

      0
      Recent

      A Guide to Having a Good Trip and Vacation

      1

      Celebrating 50th Birthday: A Guide To Planning A Party To Remember

      1

      How to Prevent Concussions in Sports?

      0
    • Travel
      1. Destinations
      2. Hotels
      3. Attractions
      4. Restaurants
      5. Travel Tips
      Featured

      Quick and Easy West Coast Road Trip

      0
      Recent

      A Guide to Having a Good Trip and Vacation

      1

      5 Tips for Planning the Perfect Large Family Vacation

      0

      Four Tips To Help You Prepare For Your Trip To Europe

      0
    • Life
      1. Household Tips
      2. Health
      3. Stay Organized
      4. Recipes
        • Breakfast
        • Instant Pot
        • Beverages
        • Slow Cooker
      5. Money Tips
      6. Giveaways!
      7. Reviews
      Featured

      Instant Pot Cheeseburger Soup

      0
      Recent

      The Importance of Regular Septic Tank Maintenance Tips for Homeowners

      0

      Top Landscaping Company Downriver Michigan 

      0

      Monroe Michigan Best HVAC 

      0
    • Parenting
      1. Crafts
      2. Fun with the Kids
      3. Tips and Tricks
      4. Pets
      5. School
      6. Toys
      Featured

      How to Dress Your Newborn For Every Season

      1
      Recent

      How to Dress Your Newborn For Every Season

      1

      Adding a Dog to Your Family? Kid-Friendly Breeds to Consider

      1

      How to Make Your Car Toddler-Safe

      0
    • Guest Posts
    • About me!
      • Work With Me
      • Contact Me!
      • Newsletter
      • Disclosure and Privacy Policy
    • Shop
    0 Shopping Cart
    Real Momma
    Money Tips

    5 Ways to Teach your Children How to Take Care of their Personal Finances

    By Lizzie WeakleyDecember 17, 2016No Comments4 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email

    5 Ways to Teach your Children How to Take Care of their Personal Finances

    Financial literacy is such an important skill, and it’s not something that all kids learn in school. Unfortunately, money is also a taboo topic in many families as well. This often means that young adults are going out into the world without a strong foundation in how to manage their money. The financial mistakes in these early years bring bad credit scores that can be hard to shake. Parents should take an active role in teaching their kids about money. It’s best to start young, but there’s always time to pick up the slack with the following ideas.

    Dinner-Table Discussions
    Don’t shy away from talking about money at the dinner table. Consider talking about the family budget or setting some financial goals. For example, you might explain to the kids that you would like to go on a vacation and need to save $100 a month to do that. To fit that in the budget, it might mean less fun nights out. Talk about how this small sacrifice will make for a memorable experience later on, so it’s worth it. Get the family excited about saving. With older children, you might also be able to incorporate some current financial news topics into the conversation as well.

    Modeling Good Behavior
    Kids pay more attention to what you do than to what you say. If you’re talking the talk about saving money and being responsible about money, you have to actively practice what you preach. Let your kids see you paying the monthly bills with personal checks and show them how much things cost. This way, they won’t be so surprised to get that first electricity bill when they move out.

    Allowance
    Giving your child an allowance allows him or her to put any financial knowledge to good use. Many experts suggest giving one dollar per year of age each week as a basic rate – a seven-year-old gets seven dollars per week. Offer ways to earn extra money by doing extra chores as well. Encourage your children to save their money in a piggy bank or regular savings account at the bank. A good way to do this is to match any money that goes into the savings account. Many families try to foster a sense of compassion by having children donate some of their allowance to a favorite charity.

    Practice
    Aside from the real-life practice kids get when they earn an allowance and determine how to spend or save it, kids can also put their skills to practice in games. Young kids typically like to “play store” and you can set something up with toys and fake money. It’s good to practice math skills as well. Board games like monopoly or apps about building pretend businesses help older children learn how to balance spending and earning to see profits grow.

    Dealing with Wants
    Perhaps the most important personal finance lesson to teach your children is about not buying things that they can’t afford. Everyone wants certain things at times, but it’s rarely smart to buy a “want” on credit. Show your child some calculations that show the true cost of purchasing on credit. As a family, refuse to buy things if you don’t have the money to make the purchase. However, remember that your child’s money is her money to do with as she pleases. Bite your tongue when she chooses to “waste” her money on something you feel is useless. Finding that you’ve spend money on something that wasn’t worth it is an important lesson to learn, and it’s best done in the safety of a loving home when growing up.

    Children have a long life ahead of them, but having a solid understanding of personal finance can set them on the right path. When you start young, being financially responsible becomes second nature.

     

    This post contains affiliate links, thank you for your continued support
    Previous Article4 HOME IMPROVEMENTS YOU CAN MAKE THIS YEAR
    Next Article Creating the Best of Both Worlds for Me

    Related Posts

    How to Dress Your Newborn For Every Season

    February 23, 2023

    How to Make Your Car Toddler-Safe

    January 31, 2023

    Crooked Teeth? 5 Things to Know About Alignment Retainers

    January 27, 2023

    Leave A Reply Cancel Reply

    Recipe Rating




    CommentLuv badgeShow more posts

    Products
    • A to Z Printable Coloring Pages A to Z Printable Coloring Pages £3.00
    Must Try Recipes
    Instant Pot

    Instant Pot Cheeseburger Soup

    0

    If you’re looking to change things up and try a new recipe this Cheeseburger Soup…

    Instant Pot Ginger-Peach Iced Tea

    2

    Instant Pot Chicken Enchilada Soup

    0

    Slow Cooker Vegan Vegetable Soup

    0

    Creamy Turkey Mushroom Soup

    0
    Categories
    © REAL MOMMA 2023. Theme by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.

    We noticed you're visiting from United Kingdom (UK). We've updated our prices to Pound sterling for your shopping convenience. Use Canadian dollar instead. Dismiss