Ways to teach your kids about money

Let’s talk about ways you can teach your kids about money:

First As soon as children can count, introduce them to money. Take an active role because repetition and observing others are the two methods they learn by.

Second communicate with your children about your values concerning money and how to save it, make it grow and most importantly how to spend it wisely.

Third help your children learn the difference between needs, wants and wishes. This will prepare them for making good spending decisions in the future.

Fourth Setting goals is a fundamental concept to help young people learn the value of money and also how to save. Goal setting for good grades, toys or savings, helps children learn to become responsible and motivated for their own futures.

Fifth indoctrinate your children to savings instead of spending. Explain and demonstrate the concept of earning interest income on savings. I used to pay 10% interest a month on money given to them to get the point across of saving it.

Sixth some parents offer to match what children save on their own.

Thanks for listening to Answers from A to Z

About Ann Zuraw

Ann Zuraw, the voice behind "Chicks, Chat and Change", is a Certified Financial Planner (CFP®), Chartered Financial Analyst (CFA®), and Certified Divorce Financial Analyst (CDFA™). If you have comments on this post contact Ann Zuraw

, , ,