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Money-Smart Kids

Recently Parenting.com ran an article that was titled “5 steps to raising a money-smart kid”. While you may be the type of parent that thinks that your children should never worry about money or finances while they are small and under age, this article tells you how to teach them the value of a dollar, and where your money comes from.

Most kids today are not money-smart at all. They think that they can just say that they want something and it magically appears from their parents. While other children are taught that if there is something that they really want, they can work toward having it, and earn money to buy it.

Teaching your kids all about money and money management at a young age is not a bad idea. The article goes on to explain that you should not use terms such as “We cannot afford it”. But rather you should say things such as “Money does not grow on trees” the next time your child is in the store with you asking you to make such a huge purchase to fulfill their wants. This shows your child that you are in control of your cash.

The article says that you have to show your kids that you have a choice about how you will use your money. By saying things such as “I haven’t budgeted for that this month”, or “I don’t choose to use our family’s money for that” when they want you to buy something that you do not want to.

The article then proceeds to the next step of raising a money smart kid and says in order to teach them about spending, saving, and purchasing smartly, you must give them some money to budget. That way you can help your child plan for his allowance.

They also state that you should show your kids your money. Try to use cash rather than credit cards when you are making purchases in front of your kids, and let them see you counting it out. When you use credit cards often, they do not realize that there is a limit, or even any cash value on them. Also let them see you record your purchases in your checkbook register from checks or debit cards.

Be sure that you mention how much things cost when you are buying things around your children. For example, when you go to the grocery store with your child, pay attention to prices and say them out loud. Let your children see you doing this and they will start to do it themselves.

You can teach your kids all about money, and start when they are young. Give them an allowance and help them manage it. Show them how to find out how much something costs, and help them count out their money. In today’s world, kids need to know how to manage their money.

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