Thursday, December 1, 2011
Easy Ways to Teach Your Children The Value of a Buck
The new generation of kids today really don't know the real meaning value of a dollar. Most of the things we had to work for and earn as teenagers are seen as needs, and are now taken for granted. It's rare to find teenagers who realize and know budgeting or even the idea that working to pay bills or earn fun money they want for a TV, the next pair of high tops or designer jeans. The real truth is, most adults don't know how to start helping them!
As parents, we need to introduce the idea of earning and money to our kids, every chance we get. They should understand the value and importance of money, the security provided by a savings account, and the need to learn how to invest savings, even at a young age. Read through these quick and easy tips to help teach your kids how to save money. If you are unsure yourself, you could pick up a tip of your own as well!
Its Never too Early or Late to Learn!
As soon as your child is old enough to count, you can start explaining how the money system works. It's easier to explain what money is all about, if they can see it in action! As the adult you have the chance to share your experience when your children want things like toys, fast food, and things like cable tv. Help them understand that everything comes at a cost and a want or need decision needs to be made first, will go far in their lives. Make sure you show patience and consistency as you help them learn, it may seem hard in the beginning but eventually, they understand. Mint.com, one of the leading online finance sites has a great article to help you get started as well.
The Security and Meaning from a Savings Account!
At a young age, help your children understand the value of savings! Make them aware of how important it can be to have a bit of savings in case of emergencies or unforeseen needs. Explain your own budget and how savings fits into your plan, and encourage them to ask questions about your own finances. Keeping things simple may be better when they are young, but as your kids grow into teens, begin showing more meaningful examples like getting their first automobile, paying for insurance, gasoline and expenses, into your talks as well. You want to reward your kids for saving money by challenging them to save with small awards like equal savings, or adding small bonuses to their own savings account every month they do so!
Provide Ways to Work and Earn Money
The fastest way you can teach a child the value of a dollar, is to make them work and pay for the things they want! If your child wants expensive clothes, make them work for the money around the house by doing chores. If its cheap skating shoes they want to buy, give them a yard clean-up task at an hourly rate, so they get a good understanding of the time and money needed to buy them. This will help your children know that money is not always easy to earn and should be spent very wisely.
Teaching children to budget money is not as hard as it sounds, as long as you just do it! As long as you are patient and consistent, you should be pleasantly surprised at just how quickly they learn and your children will mature as responsible citizens and adults.
Kim Hansen is the Marketing Coordinator for the DIY Reviews website.
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