Unfortunately, in many high schools around the country, kids don't learn about finance and how to manage money. The earlier you start to teach your child about good money management skills, the more likely he will have the skills necessary to be financially independent by the time he's legally an adult. Here are a few tips that will help you teach your kids good money management skills.
Allowance
One of the best ways to teach your child about money is to allow him to handle some money. Have your child do extra chores to earn this money, so he can learn that earning money requires you to do work. Requiring him to do more chores than his regular load will also teach him that you will not earn money by doing your part when it comes to the family household.
Prepaid MasterCard
If you have an older child, you may want to get a prepaid Mastercard for him. Any kid who is older than 13 can be an additional cardholder. Your kid will learn that he can only spend what he has and that he shouldn't go into debt by loaning money unnecessarily.
Saving
The next time your child asks you for something, instead of granting it to him, tell him to save his money for it. This will teach your child how to save money. Instead of spending all their money as soon as they get it, they will learn to save it for a time where they really need it.
Aid your child with setting money goals. For example, if they need $300 for a gaming console and a few games, help them determine how long it will take them to be able to afford the gaming console if they save a certain amount of money per month.
Good Spending Habits
Help your children whenever they make any big purchases. Shop around with them and help them find the best price. This will teach your children not go for the first price you see and to compare prices, use coupons, and look for deals, so they can save money that can be well spent on something else. Your child will thank you when they narrowly avoid purchasing something for $100 when they could have gotten it for $60.
As you can see, there are many ways that you can instill good money management skills into your children. So your children will be financially secure in the future, you should start young.
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guest post by Monique Rowe
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Image courtesy of stock images / FreeDigitalPhotos.net
