Money Basics for Kids
Now is the time of year when everyone is thinking about gifts and shopping.
It is not only the season of giving; it is also the season of spending.
One of the best gifts you can give your kids is to teach them how to manage money so when it is time to buy gifts they are prepared.
Saving
Good saving habits start early. Require your kids to save their money—be it an allowance, birthday money, Christmas money, or money they get from babysitting and odd jobs.
You could offer to match their savings after they reach a certain amount. This will encourage them to put money aside.
Spending
Teach comparison shopping. Go through the ads with them and compare what different stores are charging. Look at quantity and quality. The lowest price isn’t always the best. Ask them to think of a reason why you might want to pay more for certain items.
Borrowing
If you give your kids an allowance, don’t give them advances. If they spend all of their allowance quickly, help them set up a budget for next time. Talk to them about how much borrowing really costs and that when adults borrow money, they often have to pay interest.
Check out these websites for more thoughts on teaching kids about money:
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