10 Ways to Educate Children on Money Management
1. Make sure to get children a savings account a young age. This will help them start to learn the importance of saving money and why it is important to save money. A savings account can be opened with a small amount of money in the beginning and usually don’t have any monthly fees since the child is under 18 years of age.
2. It is important to have children do chores to earn extra money. They will enjoy getting a allowance each week for doing chores. In addition it will also help them become a responsible adult later on in life since they know how to make their bed, wash the dishes, and cleaning. They will love the idea of being able to earn money while doing chores. They will look forward to doing chores since they will extra money on a regular basis.
3. Have them save money for things that they want. This will help teach them how to save enough money and will also help them realize how long it takes to save the amount of money that is needed. You can put together a chart with math figures quite easy on a computer program.
4. Teach them that it is important to save money instead of spending it all at same time. It will help teach them that having a budget will help them not be broke. A budget will help them to afford most things that they want. They will appreciate this later on in life being able to budget their money properly.
5. You can educate children by having them write down transactions such as deposits and money withdrawn in a register. This will teach them to know how much money is actually in the savings account. They won’t forget transactions either since it will already be recorded. This will help them be prepared for a checking account later on in life.
6. Teach them how to compare prices when shopping. It is important that children how know to find an item for the best price possible. You can teach them methods to figure out which product is cheaper. When the children get to be older then teach them about buying items in bulk at the grocery store.
7. You can teach teenagers what to look for when buying a car and how to buy a good car. Make sure to teach them to check out a report on the car at carfax.com since it gives them a history of the vehicle.
8. Young teens can often earn extra money by being a babysitter for a few hours each week. Babysitting is an excellent way to earn some extra money and helps to build their savings account balance.
9. You can have the teens help you balance your checking account before you let them get checking account. This will increase the chances of them making less mistakes on their own checking account since they will already know how to balance a checkbook from helping you.
10. You can help them save money for college. This will help be more encouraged to save money since they won’t have to work as much during college. You can show them the importance of saving money for college now since it will enable them to have to work less in college at a job and be able to study more for college classes.
