eaching your kids about
money management helps them 1. Talk about money in your home;
develop lifelong money don't make it a taboo subject.
smarts. But, it's difficult to Discuss any money problems openly
teach your kids about budgeting and how you can overcome them.
when you're having money problems
yourself. 2. Give your kids regular
allowances. If they're going to
Your first step in making your learn how to manage money, they
children money savvy is to give will need to have some. You can
them a good role model. Teach give them money as an "allowance"
yourself about personal finance or as payment for household
and then demonstrate your good chores. The amount you give your
spending habits to your children child will depend on his age and
so they will learn the same maturity level.
habits.
3. Teach your child basic skills
Most children haven't been taught by using his "income" as an
the basics of money management, example. Have him list expenses
so it's not surprising that over over a month, such as school
120,000 young adults under the supplies, clothing, school
age of 25 filed for bankruptcy in lunches and treats. It doesn't
2003. If kids don't learn solid have to be exact, just a
money skills at home or school, reasonable estimate. Once you
they are on the path of having have the list, show him the
financial problems throughout difference between necessary and
their adult life. unnecessary expenses. Finally,
help him decide on the best ways
How can you help your kids avoid to spend - and save - his income.
this dismal statistic?
At what age do you start teaching family groceries - with
kids about money? Early. supervision, of course! Give your
Pre-schoolers can learn about the teen the list of items to buy, an
different coins and, for amount of money to spend and have
instance, how many nickels equal her look for coupons and ads in
a dime, etc. order to get the best prices.
Play "store" with children aged Youngsters over 17 can get jobs
5-8 to teach them how to make after school and weekends. This
change. Use real money to buy will teach them that money must
items you have marked with be earned...that they won't
prices. Also teach them that you automatically "get" money when
don't just take money out of the they're out on their own.
ATM machine but that you must
deposit money into it as well. When your teen is ready for a
This is the age to take your car, help him research the costs
child to the bank to open her of automobile ownership: the cost
first savings account. of the car itself, gas,
maintenance and insurance. Then,
9-12 year olds can learn help him find ways to save for
different ways to save money, those expenses.
from "shopping" for lower priced
items to using coupons to lower Teaching children about money
the cost. When you see management throughout their
advertisements on television, childhood will give them the
discuss how the ad tries to confidence they need to manage
influence them in what they buy. their personal finances when they
reach adulthood.
Teenagers between 13-16 can be
put in charge of buying the
About the Author:
Jude Wright is the author of "Keeping a Budget." Learn the the skills you need to manage your money. KeepingABudget.com.
Read more articles by:
Jude Wright
Article Source: www.iSnare.com 
