Raising Money-Smart Kids

Posted by: momzeebitz in ,

In order for kids to develop wise spending habits and to know the value of a day's wage later on as adults, it is important to teach them at an early age. Parents can start explaining money matters to their kids as soon as the little ones are able to speak.

So how can we teach and actually help them to be money-wise kids? Here are some tricks that I have read in Imelda Aznar's article "Money Smart Kids"


TEACH THEM TO SAVE ON ALL RESOURCES, NOT JUST MONEY.
Constant reminders to our kids to conserve water or to save electricity would impress upon them that saving on these things will also help mom and dad to save money for the household.

ESTABLISH A PESO-TO-PESO SAVINGS PROGRAM.
Match your child's savings for peso (or 50 centavos for every peso saved). It doesn't only help your child's savings to grow quickly, it's also a powerful incentive to encourage them to save regularly.

SET UP FAMILY PIGGY BANK.
Have a goal and save it as a family - say, a summer trip to the beach.

WHEN GIVING THEM MONEY, GIVE IT IN DENOMINATIONS THAT ENCOURAGE SAVING.
For example, if you are giving them P100, give 5 P20 bills and encourage them to save at least P20

DISSUADE THEM FROM BORROWING MONEY FROM FRIENDS.
Teach them instead to buy only the necessary things. If they are old enough to understand the concept of paying interest, charge interest on small loans you give them so they can quickly learn how expensive it is to "rent" someone else's money.

USE BOOKS, GAMES, AND MUSIC.
These are products in the market today that teach little children about money and saving. Such books include as Lucky The Golden Goose by John Wren or Tops and Bottoms by Janet Stevens. There are also board games, like Junior Monopoly, Moneywise Kids, Payday and the Allowance Game, and simulation toys like cash registers and ATM machines.

ENCOURAGE THEM TO GIVE TO CHARITY.
Teach your kids to set aside a portion of their money for charity. It's a great way to teach them about sharing and compassion towards others.

KEEP A MONEY JOURNAL.
You can encourage your kids to keep a journal that features all her goals (with pictures), savings plan, or expense summary.

This entry was posted on Friday, December 05, 2008 and is filed under , . You can leave a response and follow any responses to this entry through the .

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