Money Management Tips For Kids Facts

by David Jenyns on July 28, 2011

The majority of parents want to provide for their children, and pocket money is a main need. As a parent, you should not only provide food, clothing, and shelter. Just giving them money with no consideration of how they will spend it is not only useless, but can even be dangerous. Not only will they not learn how to manage money and suffer later in life because of it – they may just end up spending your hard-earned cash and expect more and more. Money management skills are important and if they don’t develop them, they may find themselves deep in debt.

If your child is very young, you may play games like Payday and Monopoly with him/ her. They will enjoy playing and learn to manage money at the same time. Money management learning should start with the first time your kid is given an allowance. For instance, if a relative gives them money as a present, don’t offer to keep it. You might end up spending it, and your kid will be left with the memory that parents don’t keep their promises. It is better to ask your kids what they want to buy with this money and help them choose, or suggest something, if what they want is really expensive, and you have to cover most of the cost. If this is the case, you could advise your child to save all or part of the money for this special and expensive purchase.

It is important that your kid has a place where to keep the money safely. You could get them a neck pouch or money belt, because they might lose wallets or purses. A piggy bank is also a good idea, although perhaps not the most appropriate thing for an older child, say one in his or her teens.

They are very appropriate for younger children, especially the see-through kind that let them see the money grow. Advise your child to save change from shopping, and when their pouch, belt, or piggy bank is full, you can help them count and sort the money. After that, you could turn the change into bills or a deposit at a bank. This is a great opportunity to teach your kid about savings accounts, deposits, and more.

You can let your kid prepare the grocery list and then go shopping together. This is a great chance to help kids learn to compare prices. They will learn what a certain sum of money buys in one shop as opposed to another.

Your children should earn at least a portion of the allowance. Get them help you with the chores at home. Your teen may also have a summer job.

Some recommend that children get a weekly allowance that corresponds to their years – $6 to six-year olds, $10 to 10-year olds, etc. This is not all that important, however. The most important task that you have is to teach them how to manage money. To learn more visit Canadian Credit Card.

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