Money Lesson for Kids: 7 Tips

Wondering how to teach your children about money? A personal financial planning should be known and taught since childhood. Here are seven ways to good common sense that you can include when talked to your children about money.

1. Give money to learn on their own

Experience is a great teacher, and give them a small allowance is an important way to teach children to manage money. You might consider basing the amount on the age of the children.

2. Help them set financial goals

Sooner or later your kids will want something that costs more than the money they receive their allowance. This presented a great opportunity to help them learn to manage a budget. It is important that children are understand enough to be patient and careful with money.

3. Do not hide the family's financial situation

Sometimes parents believe that talking to children of the family finance is to put a load on top. By sharing certain things about your financial situation with your children, they have a reference point to understand why you tell them "no."

4. Help them feel what it is to earn your money

When children make the connection between work and wages, they will realize much. Not only understand the value of hard work but appreciate every dollar they earn.

5. Let them make mistakes

Sooner or later your children will make mistakes with their money. It is important to warn about risks (such as buying a cheap toy that may not last long). Once this is done, let them make their own decision. When then be disappointed, help them understand what happened.

6. Help them make informed of buying something

Save coupons may be natural for you, but not born that way. The same is true about learning to compare prices, budget, and using debit cards. Be aware of the offers or decide between two marks. You should teach your children these same lessons.

7. Give incentives for saving

Saving is a skill that many people has lost. You can help your children learn to save by paying a simple interest rate based on money not spent. For example: for every $ 10 they save at the end of the month, you can add one or two dollars.

May the above tips could help you in teaching money lesson for your kids. Put your opinion on comment below.

Happy investing :)

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