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girl with piggy bank
Children of all ages seem to understand that money is something of value. As parents, it is important for us to help children learn how to manage the money they have and plan for future purchases.
For young children: As soon as children are able to count, introduce them to money. Allow children to have change, count it and place it into their piggy bank. When they are old enough to understand that money pays for items, allow them to use their money to buy something small at the store.
For elementary school children: Give children an allowance for tasks completed around the house. This teaches them that money must be earned. Pay them their allowance in denominations that encourage savings (such as 5 ones instead of a 5 dollar bill). Have them put aside a few dollars before spending the rest.
Teaching children the differences between needs and wants will prepare them to make good spending decisions in the future.
For middle and high school students: Take your child to a bank or credit union to have them set up their own savings account. Also, encourage them to keep track of their own spending. Making their own decisions about what to spend their money on can be very educational. For larger purchases, have your child research where and when to buy the item they'd like to make sure they are getting the best price.
For more tips on teaching children about being financially responsible, visit http://life.familyeducation.com/money-and-kids/parenting/36332.html
