In the consumer-based society we live in, kids often don’t understand the concept of money as well as we’d like. That is where you come in. The best way to secure your kids’ financial future is to help them start understanding finances early. Many experts believe that kids as young as 3 are ready to start learning about money.
Here are some ideas you can try:
- In the early stages of childhood, it is crucial to expose your children to money in one way or another. By helping your kids understand the difference between pennies and nickels, you’re already on the path to a better financial future for them. Try playing grocery store with young children. Encouraging them to “shop” with play money helps them to understand the value of money and the concept of purchasing the things they need.
- By elementary school, many children will begin to ask for allowance. Ultimately, the decision is up to you. If you decide to try it, many experts say that a reasonable allowance is $1 per week for every year in age. For example, a 9-year-old would receive $9, a 12-year-old $12, and so on. Giving children an allowance helps them gain independence and really understand the value of money. They learn that they need to spend wisely in order to get the most out of the money they earn.
- You should also consider advising your kids to set aside some of their allowance, so that they being to learn the importance of saving. Even though it might be tough for kids to reduce their spending, saving money helps them understand that they need to plan for the future.