Money Matters For Kids, A Parent's Responsibility
Teaching money matters for kids can seem to be a never ending task
. There are some basic lessons that should be included in each child's lessons. Most of the training can be done in an informal manner, but other parts will require formal training on the part of parents. Always be on the lookout for the child's teachable moments when they want to learn about money.Of all the lessons a child will learn concerning money, saving money to meet needs in the future is one of the most important. If your child saves in a piggy bank or in an actual savings account, savings is a form of delayed gratification. Saving now means that the child will be able to make a larger purchase in the future. That larger purchase will be more meaningful, because the child knows that there were some sacrifices made for the purchase.
Children should be taught to keep track of money. They will need a safe place to keep money when it is not going to be spent. They should learn to count change from a purchase. They should also be taught to keep receipts to keep track of where they spend their money. When these habits are taught at a young age, they can be used throughout life.
Budgeting is also an important lesson for children to learn. While they may not understand everything about budgeting, they continue to watch everything that mom and dad do in meeting and following a budget. Lead them by example and they will understand that budgets are important.
Children also need to learn the importance of investing so that their money can work for them. One way to teach them to make an investment in one share of stock for the child. Let the child follow the value of the stock to learn about investing. If the child enjoys this, he may take his own savings to buy more shares of other stocks.
As a part of the preparation for college, students should learn to use credit. At times, credit makes sense as you consider major purchases. Children need to learn that credit is not cash and it must eventually be paid back. They should learn that what appears to be a bargain on sale will cost much more through credit.
Money matters for kids is a never ending lesson. Even after reaching adulthood, children will still need to learn more about using money wisely so that it becomes a tool and not a master.
money matters for kids
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