3 Important Tips For Teaching Kids About Money

Your child’s understanding of financial matters is a major determining factor in their future success as an adult. You must teach them financial responsibility while they are still in the comfort of their own home.Empowering our children with practical financial education skills before they leave home will help them avoid money issues many of their peers will face. Understanding the financial market can be challenging, so young people need to learn the importance of money as it applies to their life. Here are some tips for teaching kids money.As soon as your child is able to complete household tasks assign them jobs which allow them to earn money. When your son or daughter has completed the chore pay them and have them split up the money so some goes into money they can spend now, money that is saved for their long-term financial security, money that is saved for something bigger that they want to purchase and money to give to a cause they support.All children should have chores to do at home just to help out, and they shouldn’t be paid for them. Give kids the opportunity to do various household tasks for a set fee. Encourage them to choose one. Remind them that they must do it well in order to be paid. Although some children may want all the money now; make a big deal about this process and get them focused on the bigger picture. Teaching kids money skills will take dedication on your part. Resist the urge to let them use the money other than what it is allocated for.2) Continue teaching kids money skills as they grow. Their financial education should continue until they leave the security of your home. During their junior high years expand their financial education skills set by including them in your financial decisions. Next time you go to the bank, visit your tax planner or financial advisor bring them along. By including your kids in activities you can make it fun for your child to learn about money skills during these years. This way they get a first hand financial education experience that can benefit them throughout their life. Also during these years spend time relating money to lifestyle. Talk with them about the lifestyle they want to live and directly relate that to picking up financial education skills. Teaching kids money skills is a lot more effective when your talking about lifestyle rather than financial security.3) Once your child becomes a teenager and is old enough to work, have them get a job. Many parents prefer that their children do not work while in school. Well if they are not involved in extracurricular activities and just have school it is important they learn how to effectively manage their time. Teaching kids money is as much about teaching them the direct financial education skills like savings and investments as it is about helping them build the skills that will help them command a higher salary.Have a family meeting and discuss your expectations for your children. Set a minimum percentage of his pay that he will be required to save for the long-term, save for the mid-term purchases, donate to others and money they can spend now. It is also recommend that you allow them to choose one of the bills, such as the light bill, water bill or gas bill let your child know he or she will be responsible for paying it on time every month.Follow these tips for teaching kids money and helping them pick up financial education skills, and you will set the stage for your child becoming a responsible, successful adult. If you neglect to teach your child about money, the future may not be so bright.