Sabtu, 22 Oktober 2016

8 Ways To Teach Kids About Money Management

Investing Money for Children, Teaching Kids to Save, kids money management, kids money games, printable money for kids, history of money for kids kids + money documentary

Money gives people -- both young and old -- decision-making opportunities. Educating, motivating, and empowering children to become regular savers and investors will enable them to keep more of the money they earn and do more with the money they spend.

If kid don’t learn how to Save/Spend/Donate as a child, I suspect that they will have to learn the hard way about managing money like I did, with credit card debt racked up after college.

With that in mind, here are a few ideas to teach your child how to save:

1. Make a Savings Goal Chart. Once you know what your child wants to save for, figure out how many weeks it will take and make a chart. You can represent each week with a box and your child can put a sticker in that box once the money from that week’s allowance is set aside. We did this with my son, and he put a picture of the Transformer toy he wanted on the chart. We figured out how many weeks of allowance it would take to save up (after his long-term savings and church donations were taken out). Every time he received his allowance, he would divvy up his money and put a sticker in a square (he loved stickers at the time). This way, he could see himself getting closer and closer to his goal.

2. Introduce children to the value of saving versus spending. Explain and demonstrate the concept of earning interest income on savings. Consider paying interest on money children save at home; children can help calculate the interest and see how fast money accumulates through the power of compound interest. Later on, they also will realize that the quickest way to a good credit rating is a history of regular, successful savings. Some parents even offer to match what children save on their own. Allowance and Spending Decisions

3. Take a field trip. Learning opportunities happen everywhere and at any time. A trip to the grocery store can ecome a real world application of concepts learned in math class, such as addition, subtraction and units of measurement.

4. Talk with your child about what the budget is for this gift choice. Look again at the list and together eliminate any which are obviously too expensive.

5. Talk About Money. While you may not want to discuss your salary in front of your children, you may want to let them hear you discuss your financial plan and the arrangements you’re making for retirement, for example. This could simply be having a conversation with your spouse while your children are in the room. In this way, your children can understand that saving is a lifelong endeavor.

6. Be cautious about making credit cards available to young people, even when they are entering college. Credit cards have a message: "spend!" Some students report using the cards for cash advances and also to meet everyday needs, instead of for emergencies (as originally planned). Many of those same students find themselves having to cut back on classes to fit in part-time jobs just to pay for their credit card purchases.

7. Talk together about how a present doesn’t just have to be purchased  from a shop or store, is there something handmade that this person might like? Add any suggestions to your list.

8. Explain to your children that money is just a tool and they don’t need it to make them happy. It is a means to an end and not the ultimate goal in life. Teach them the values associated with sharing, recycling and caring for others and the environment

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