11/18/21, 1:49 PM
How to Teach Kids about Money Management | Piroska Nagy-Mohacsi | Education
a How to Teach Kids about Money Management by Piroska Nagy-Mohacsi | Nov 18, 2021 | Education, Piroska Nagy-Mohacsi
You should begin teaching your children about personal finance from a young age to ensure they start their adult lives with the knowledge they need to thrive. The best time to begin is when your kids are still in kindergarten, and you should continue teaching good money management principles throughout their childhood and teen years. This will ensure they will save and spend wisely when they leave home to attend college or start a career.
Start With Pre-Schoolers and Kindergartners Even though your children are still young, you should already be teaching them some basic concepts about money management. Start by teaching them that everything they want will cost money. Find something special each child wants, such as a popular toy, and encourage them to save the money for it. You can help them save by getting them a https://piroskanagymohacsi.org/how-to-teach-kids-about-money-management/
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11/18/21, 1:49 PM
How to Teach Kids about Money Management | Piroska Nagy-Mohacsi | Education
savings jar or ceramic bank. When they have saved enough for their desired object, let them buy it with their own money.
Teach Older Children About Earning Money As your children reach the elementary school and middle school ages, you can shift the personal finance lessons you’re teaching. This is the time to start paying them an allowance that’s based upon the chores they perform. You should also help them start their first savings account to give them someplace to save their earnings. Advise them against impulse buying and help them understand why it’s important to save for long-term goals. For example, they can either buy those new shoes today or they can save that money to put towards paying to attend athletic camp in the summer.
Teach Teens About More Complex Personal Finance Needs As your children become teenagers, it’s important to start teaching them about credit. They should learn that credit cards are only to be used as a tool to build credit for major purchases, such as a home or car. For everything else, your kids should be taught that it’s better to save their own money. Help them build a budget that will allow them to save money for future financial emergencies, bigger purchases, and vacations.
You can instill these practices through consistent reinforcement to ensure your children understand the basic concepts behind money management. From building credit to saving for retirement, the personal finance lessons you teach your children will help them build a more stable financial future for themselves.
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