3 Tips For Teaching Money Management To Children

3 Tips For Teaching Money Management To Children

While it isn’t necessarily true that you can’t teach old dog new tricks, it is easy to see the point that old and famous adage is trying to make.

Most times, regardless of whom you are or where you’re from or what you aim to do, you are usually very likely to start out with something exactly as you mean to finish it.

This means that it’s best to develop good traits and characters as early on as you possibly can. This simple fact is applicable to children as well.

Young minds are particularly quick to learn. This means that they essentially absorb all the information around them at an early age. It is this important that they process and then use as the basis for determining what their “normal” means.

When it comes to teaching children about financial management, many parents are of the opinion that handling such a topic with children is going too far. People of this school of thought tend to believe that children should be given free rein in this department and that the issue should be raised once they are older.

This can be potentially disastrous because by that time, these kids might be too set in their ways to even see any real need for change.

As such, it is important to introduce this concept to them early on in life. A report in the NY Times agrees with this as “…children are very interested in money…so teaching them how to manage it is very key.”

How do you do this?

  1. By getting them a savings account. Teaching them the value of saving toward a particular goal can do wonders for positively forming their opinion on financial matters.
  2. Encouraging actual work by payment. This will give them the foothold they need later on to understand that money comes after a good job is done.
  3. Lastly, by helping the kids see the consequences of financial imprudence by setting penalties for money mismanagement.

It might all seem harsh, but in the end, these are tools your children will find handy in the future.