Teaching Kids About Finances

It can be both easy and fun to teach children about finances. Learning about money helps children to also learn how to be generous, responsible and aware of their spending decisions. It is never too early to start teaching your kids about finances in your family. Children who understand what is required to be able to run a household are able to learn the value of money at a very young age.

One way to introduce children to the concept of money and balancing a budget is to give them chores for which they are paid an allowance. It is also a good idea to teach them to save around ten percent of that allowance in a savings account. You should not allow them to borrow against future allowances for a larger purchase, but to save for any items outside of their current budget, thus setting a healthy precedent and attitude to money for their adult life.

Giving children an allowance that they can spend largely as they wish establishes a foundation for dealing with money and being mindful about things that they really want to buy and things that need to be saved up for in order to acquire. Working for chores also teaches them the importance of the concept of work for pay. 

How To Encourage Your Kids to Apply Themselves

Parents often grow frustrated trying to convince their youngsters that applying themselves to chores, schoolwork, and other necessary tasks is important. You don’t have to resort to threats or bribery, though. Try some of these tips:

• Focus on progress, not perfection. Kids will shy away from chores if they feel they can never do a good enough job. Set reasonable standards, but don’t obsess about their getting everything perfect. Reward progress, not just results.

• Give them a choice. If kids feel they have a choice about what to do, or how to do it, they’ll try harder. Provide them with options, and be honest about what how they can do a good job.

• Give them lots of praise. Make them feel good about what they’re doing. They’ll want to do more if they feel good about their work. Point out their strengths, and make sure you’re sincere, honest, and specific in your praise.

• Talk about your own work. When you share your own achievements in your job or hobbies, kids may be motivated to work harder so they have their own successes to share with you.