Tips for Teaching Your Children About Debt and Everyday Money Matters

Tips for Teaching Your Children About Debt and Everyday Money Matters
Children tend to follow in their parent’s footsteps when money is concerned. If you want to instill good money management, then start your kids young. You want them to appreciate and understand the value of a dollar. However, first, you need to think about what it means to you. Is a dollar the sum of all your hard work and dedication to a job? Is it a reward for being good? Will money produce happiness? Can it provide you with long term investments? The truth lies in your own fiscal philosophy. You need to be able to answer questions like these honestly before you begin to teach the kids what it means to earn and spend money.
Let Them Decide Their SpendingĀ An allowance is a great way to get kids to understand the basics of saving and spending. If they want an expensive toy, then they will need to save for it. However, they are also more than welcome to spend it on cheap snacks and toys. The choice is theirs. If you have your kids earn their allowance with reasonable chores, then they will understand the value of the dollar better. They will see the expensive video game as 3 weeks of hard work instead of $70. It will begin to register with them that money is not a game. It is needed to provide yourself with the basic necessities and wants. It is hard for kids to comprehend the former, but they can learn about the later if you let them freely spend or save their allowance.
Don’t forget to keep reading for more Tips for Teaching Your Children About Debt and Everyday Money Matters šŸ˜‰
A Debt GameTeaching your kids about debt can be a hard thing to do. If you want to make it simple, tell them you will loan them money to buy a toy they want. Then, tell them you will need them to complete enough chores to pay off their debt in a certain amount of time. If they are not able to do that, then they will pay interest or their toy will be taken away. This might be drastic, but it will show them what happens when you do not pay your bills on time or in full!Investment SuggestionsIf they are having trouble spending or saving, then suggest that they split their money into separate piles. For example, tell them to save some of their money, spend a little, and keep the rest on hand for “emergencies.” This will help your kids see how saving can work. You can also create a goal chart that highlights money earned towards a certain to or trip. This will get them to work hard and obey so that they can reach their goal. Teaching your kids money matters today will help them in the long term. You want them to financially sound and independent. Plus, you do not want them living at home at 30 because they have too many credit cards and loans with little no know income. Hard work is the only way that they will get money in the adult world. A little push in this direction thanks to an allowance program will help your kids understand the basic values of money as a whole.

Author Pam Johnson is a mother and an accountant, which makes her passionate about teaching her children to be smart with their money. She obtained her degree from one of the Top 10 Best Online Bachelor’s in Accounting Programs.
Do you have any Tips for Teaching Your Children About Debt and Everyday Money Matters that have worked well in your home?

Share Your Thoughts: