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Five Easy Ways to Teach Kids About Money

One of the things they don't teach at school happens to be one of the most important things adults need to know: how to manage money. Any conscientious parent should take over the responsibility of teaching their kids about money. There are many money games that you can play with your kids at any age to teach them about earning money, spending money, learning the value of money, and saving money. Buying a coin bank for children or making a money jar can be the first step. Personalized piggy banks or sports piggy banks lend some decorative flair to kids' rooms and can be used as a tool in learning about savings, as well.

1. Start with the game of letting them drop coins in their coin or belly banks. From a young age, we love seeing our names on our possessions. A personalized piggy bank with their name stamped on it will encourage kids to take pride in saving money.

2. When they are old enough to like sports, you can buy them a piggy bank with their favorite team logo, which encourages them just to save or to save up for tickets for sporting events.

3. Is there a particular college you have in mind for your kids? Some subtle persuasion never hurts. They'll grow up and choose their own college, but in the meantime, order a coin bank with your favorite college logo and encourage them to save for whichever college they choose.

4. When they are old enough to want shiny gadgets, make them understand that they can save for it and you'll match whatever they have saved, so they can reach their goal quicker. They'll learn about goals and the value of money.

5. As early as the age of three, you can give them allowances (usually one dollar per their age) and explain to them that they can spend some, as long as they save, and it's a good idea to teach them to give to some type of charity. You can buy them a piggy bank with different slots. Or, if you can afford it, buy two or three piggy banks, a large piggy bank for the high priority goal, and smaller piggy banks for savings and charity. Then they learn to give away 10%, save 20% and spend the rest on a goal.

Learning about the value of money and savings is a must. Next step after savings will be opening a bank account for them.

Article Source: http://EzineArticles.com/?expert=Grace_T_Thompson

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