AllowanceGiving your child an allowance for doing small tasks around the house can be a great way to help them learn the value of money. When your child sees how much work it takes to make money, they will truly grasp the concept of earning it.
Disbursement Options
- Save- open a savings account for your child so they can see how much money they are collecting over time when they add to it.
- Spend- bring your child to the store and show them how much they can buy with how much they have to spend. Show them the options available in their price rage. You can also point out that spending money doesn’t have to be spent at that moment. They may see something out of their price rage that they could have the money for if they saved their spending money till the following week when they will have more spending money.
- Share- give money to charity is not only fiscally responsible, but from a moral standpoint, it helps to teach community responsibility and helps children feel good about themselves.
Coupons
Now that they have a bit of their own money to be spending, it is important that they recognize how much things cost. It is important that your child understands that coupons help to lower the price of items they want which will leave them with more money to spend or save after the purchase.
Be a Good Role Model
It is critical that your child see proper money management techniques in order to learn good methods. Children model so much of what they do on the behavior of their parents, and managing money is no different. Setting positive examples in the home is an excellent way to lead by example to teach financial responsibility.
