How Do You Teach Kids To Manage Money?
You don’t have to earn a degree in finance in order to teach your kids how to manage money. As long as you have a little know-how, patience and the willingness to repeat money-managing concepts to your kids until the concepts become habit, you will do just fine. Follow these steps to learn more. Start young. It is easier then you think. Some easy suggestions are to open a savings account for a child to save money and keep a piggy bank at home for spending money. Begin with the concept of value. Kids won’t manage their money if they don’t understand its value. If you give children money every time they ask or buy them everything they want, they will never understand the value of money. Move beyond spending and saving. These concepts are basic and most kids already know that you have to spend money to acquire things. Explain how simple interest is earned or the benefit of donating to charity. Make them earn it. If your child wants a new $50 toy, but only receives $10 a week for allowance
