How Do You Teach Money Management To Children?
Reading, Writing and Arithmetic are subjects taught in school. Finance and money are subjects left for the parents to teach. Where do you begin? MAKE MONEY. You have to have money before you can do anything else with it. If the child is young, perhaps you can begin teaching him about your financial values by giving him a weekly allowance. An allowance is a way to familiarize the child with the concepts of money, how to spend it, how to save it, how to invest it and how to donate part of it. As the child grows older and takes on more responsibility around the house, you can stop the “allowance” and teach your child how to EARN money. After all, as an adult, we work to earn money. Tell him that any work over and beyond his allotted chores will earn him cash. You and the child can decide ahead of time, what chores this will include and how much it will be worth so as to avoid any confusion later. SAVE MONEY. Preface the fact that a portion of the money needs to go toward savings. Open a s
