Teach Kids Money Management Skills
Learning by example is often the best way to learn.
Teaching kids money
management by example is the best way to help them learn a
valuable lifetime skill.
What are you teaching your kids?
They watch everything you do and hear everything you say.
If your actions don't match your words they learn there is a
double standard. It's doubtful that is your goal.
Kids and money are an important pairing. They must
learn to handle money properly or they will end up being its
slave.
Money management for kids is often a lesson that is not
intentionally taught until they are teens. That is simply
too late to start. Your kids have been watching your
actions for years and may know more than you realize.
Make a point to begin teaching your kids money management
skills by the time they begin school.
Once they are in a formal school environment they will need
to begin to understand basic money management techniques.
You may be shocked at what they have already learned just by
observing you.
Below are examples of how you can begin teaching your kids
money management skills without a lot of discussion. Allow
them to observe your behaviors and listen to your words so they
will make the natural connections for themselves.
- Be a frugal shopper.
Let them see you
cutting out coupons and making wise
purchasing choices. Get them involved in shopping and
picking out less expensive products.
- Do simple car repairs yourself.
Many
car repairs are simple and will save you cash. Changing oil or rotating tires are not difficult jobs and
can usually be done at home. Explain what you are
doing and how it saves money.
- Learn to do simple home repairs.
Do a little research in the Internet and learn how to
do
many home repairs yourself. They often don't take
special tools or skills and can save a lot of money.
Have your kids help out so they learn the value of research
and hard work. It can be a very fun experience.
- Reduce duplicate charges.
Let your kids see you looking for ways to save money at
home. Discuss duplicate bills such as a land line and
a cell phone. Do you need them both? Get them
involved in these simple types of decisions and explain the
family value.
- Buy 2nd hand clothing.
When your kids understand that there is a lot of good
clothing available from 2nd hand stores and garage sales
they could get excited about saving money. If they see
you buying some for yourself that simple action will speak
volumes to them.
- Make saving a habit.
Not all savings have to be done through a bank. Create
a safe place to keep savings for a trip or something
special. Let your kids see you adding to the savings
and allow them to watch it grow, and finally be used.
Help them to create their own savings projects. Don't
forget your
retirement savings plan as well.
- Teach budgeting basics.
Your kids money management training must always include
creating a budget for themselves. If they see their
family successfully living off a budget they will learn how
well a budget works and always use one themselves.
Budgeting should always be a priority when teaching money
management for kids.
These are a few suggestions for teaching kids money
management skills. Basically, look for things you do
automatically and allow your kids to be involved. Whether
shopping for groceries or fixing up your home, there are
plenty of ways to save money if you look around.
They are going to watch and learn either way. Make sure
they learn what you want them to learn.
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