|
Author: Gregory Thomas Article source: http://www.opentopia.com/. Used with author's permission.
We take it for granted that children know how money gets into our wallets. The tips below will guide you through teaching your children the value of money.
Now I'm not referring to the value of stocks and bonds, compounding interest, or the current market value of a U.S. dollar.
What every child should be taught at some time, is: the purpose of jobs (how we earn money), saving for goals (how to save money), limit needless spending (how to budget).
It's up to you to decide when and at what age it is appropriate to discuss the following topics. But keep in mind that if you don't teach them the skills to make educated, responsible decisions with their money, you will be holding back a valuable lesson that should be taught. Learning how to successfully manage money is a skill they will have for life.
Where To Start
Don't assume your children know the meaning or purpose of a job, bills, banks, etc...
Let them see you pay your bills. Explain to them how you have 'X' amount of dollars per month to pay for everything. Point out the dangers of getting into debt (credit cards). Explain that ATM machines are not magic money dispensers that give you as much money as you need, for free.
Learning comes from experience. Just talking about money will not get the job done. Learning how to earn, save and spend money appropriately comes from real life experiences.
If your children do not have an allowance already, think about starting one. Only when they have their OWN money to manage, can they put your lessons into practice.
When you are discussing allowance with your children, relate it to your own life. Explain to them that when you want to buy something, you must first work to earn money, then save enough money in order to purchase it ie: car, house, clothes. Tell them that if you don't go to work and earn money, there's no way you can afford to buy what you want.
You can then explain to your children that if they want to buy a new toy, they must earn the money in order to buy it.
It's Up To You
You can design your childs' allowance and chores however you see fit: weekly, bi- weekly, monthly, pay-per-chore.
One method that's effective is designating 'X' number of chores, for 'X' number of dollars per week.
For example: "Johnny. You will earn $5 a week if you do these jobs/chores: water the lawn (twice), take out the garbage, vacuum the house (twice), and feed the cat everyday."
It's up to you to develop a list of chores that can be done around the house, and an appropriate allowance amount to go with it. In other words, you shouldn't have your child painting the whole house for a quarter.
You should also be sure and make the jobs/chores age appropriate. A twelve year old will be able to do more than a seven year old, so take this into account when thinking of chores.
Now don't confuse allowance, with the basics. What are the basics? Keeping their room clean. Doing their homework. These are jobs that should be done without question. Period.
Once You Start
When your children earn their allowance for the first few times, they will want to immediately go and spend it. Fear not. This should be expected. Here is where you can start to teach your children.
Sit down with your children and talk about the "things" they want to buy. Have them prioritize their items on a list, in order of importance. This list can be considered their "Goal Sheet" - the reason they are saving their money.
Have them keep this list in their wallet/purse/piggybank, so they will always be able to look and see what they are saving for. You should also keep a copy of this list just in case they lose it, or want to purchase something that's not on it.
The next time you are in a store, and your children want to use their money to buy something, first ask them: "Do you have your wallet/purse that has the money you've been saving?".You can then ask them if that particular item they want to buy is on their list.
Asking these questions will get them thinking about the items importance. Is it more important than the other items on their list? Let your child make the decision whether to buy or not.
Regardless of what you say, more than likely your children will make the purchase even if the item is junk. That's ok! This is a lesson your child must learn. Only when the initial thrill of the toy wears off, or when your child realizes that the other items on his/her list were more important, will they begin to understand the value of their money.
Conclusion
These are only some of the possibilities you might want to look into. Regardless of what you can take from this article, adapt it so it fits into your family lifestyle.
Money management is a learned skill that comes from real experiences. It is very important that children learn the value of money and the role that it plays in our lives. Teach them how to make smart, educated buying decisions. Stress the importance of setting priorities and working to achieve that goal.
Once your child achieves one of his or her goals, they will understand what it takes to be successful. They will know how to budget their money and limit unnecessary spending in order to buy what they REALLY want or need. Gregory Thomas has been writing effective money-saving tips for SavingSecrets.com for over six years. Hop on over and you'll find FREE money-saving articles, a monthly newsletter, and even a FREE Ebook download just for stopping by! http://www.SavingSecrets.com
Buy Properties in Bulgaria: Investing in Bulgarian Real Estate
Discover the past events that have made buying a property in Bulgaria so attractive to foreign buyers.
Gift Cards - Is It Time to Use Them for My Business?
There's plenty of money in gift cards. Why are they becoming popular? Is it time to invest in them?
New Trends for Wedding Favors 2005
Today's Weddings combine the traditional with the modern and elegant design with great functionality. Here are some of the hot new trends in wedding favors:
A Guide For Customer Service Training Tools
Let's face it, good customer service can make or break a company. Even if the product is top-notch, if the sales representatives don't have great customer servi...
Innovation Management – The Harsh Facts Of Life For All Innovators
Your opinion doesn't matter. The end user's does.
Nextel Cellular Phone
Nextel's predecessor — Fleet Call, Inc. - was founded in 1987. In 1993, the name, Fleet Call, Inc. was changed to Nextel Communications, Inc. Since then Nextel ...
The Dangers of Canine Parasites
Some canine parasites can be very dangerous to your dog, especially to puppies. Hookworms, roundworms and tapeworms can often times cause serious health problem...
How To Burn 50% More Fat In Every Workout With Secrets For Weight Loss Success
Did you know that exercising during the early morning hours really helps increase your fat burning ability? To get the most out of your workouts, make sure you ...
Job Hunting with Classified Ads
According to the Bureau of Labor Statistics, the effectiveness of applying for a job directly with an employer is 47.7%. Are you going to be one of those 47.7%...
Healthy Eating Myths Shattered
If you believe something to be true that isn't, it can get in the way of producing the results you want. Learn what just ain't so about eating healthy...
Logo Design: What You Need to Know Before Jumping on the Brandwagon
Logo design by itself is not branding -- it's decorating. Learn what you need to know before having a logo designed for your company.
Email Communication
Gartner estimates that half of the 5.5 trillion emails sent in 2001 was business related. Email has already taken over as the businesses' main communication cha...
7 Reasons Low Carb Diets are Wrong
The human body is designed to run best on a certain type and balance of fuel. Unfortunately the latest low-carbohydrate fad diets are not fuel that the human b...
We Sell For Less and Our Stores Are a Mess!
What kind of image do you present when marketing your products? Are you professional and well organized or does your store/site/whatever scream, "sloppy!," to t...
12 Reasons to Develop Exceptional People Skills
Why should you bother to spend your valuable time learning how to develop exceptional people skills? Here's why... Look at the people who seem to have it all...
Just How Organized Are You? Take This Quiz For Individuals
How organized are you - Quiz for Individuals
Constipation Cures Exposed!
If you're suffering from constipation, you are no doubt looking for some answers to bring relief. Treatments for constipation vary with the type of constipatio...
How to cut a cake
First select a knife you are comfortable holding. A long slender knife works best. Begin the first cut about two inches from the edge. Cut along the entire e...
The Secret to a Longer, Healthier, Happy Life is a Strong Immune System!
Imagine all your worries about what your health quality of life will be like in retirement melting away!
MLM Products - The MLM Success Formula for HOT Selling Network Marketing Products
What are the secrets to HOT Selling Network Marketing Products? READ ON!
Internet Marketing Strategy:The Advertising Co-op
The advertising co-op is an Internet marketing strategy that should bring sustained financial success.
Healing From Within
This article explores a new way of dealing with pain and illness and shows how to start the process of healing from within. When we tap the power of healing fr...
10 Essential Ingredients For Finding The Perfect Roommates
Discover how you can find the right roommate for you by creating your own "perfect roommate recipe". Simply stir in each ingredient and you'll soon be able to d...
Trading Psychology: Mistakes in a Trading Environment
When it comes to trading, one of the most neglected subjects are those dealing with trading psychology. Most traders spend days, months and even years trying to...
|
Print this page