Teaching Your Kids About Money
Teaching your kids about money is one of the most important gifts you can give them. It’s something most kids do not learn in school, and if they do, it’s usually not until high school when their attitudes and emotions toward money have already been formed.
For some parents, the challenge is not knowing when and what to teach them. Kelly Community has started this monthly blog post dedicated to helping you teaching your kids about money and financial responsibility.
Here are this month’s tips.
Start with the basics at a young age
Experts say kids are ready to learn money basics by age three or four. Start with very basic topics that are hands-on. For example, when they are at the grocery store or other places where you are spending money, explain what money is. Show them how it’s used. Let them see you making purchases. They may be too young to comprehend the concept of earning money, but by watching you purchase things, they begin understanding that money is something that helps obtain food and clothing and other necessary times.
Show them how money is earned and create opportunities for them to earn money
Elementary school age is a good time to introduce these concepts. Your kids know you go to work every day. Now they need to know why – to earn money for the things you want and need. Discuss how you and other family members earn money, and help your kids earn money with jobs like cutting the grass or loading the dishwasher. This is not necessarily an allowance. It can be a one-time task you or your friends or neighbors pay them to do. Teach them hourly wages and help them understand how many hours they have to work to buy something specific they want.
Instill a habit of saving
Open a savings account with them and encourage them to deposit a percentage of money they earn, whether it’s from an allowance, chore money or money they receive as gifts. As they get older and work jobs outside the house, teach them to save more.
Be a good role model
Our kids watch everything we do. Lead by example and make responsible decisions with your money.
Check the financial education section of our website monthly for more tips on how to teach your kids about money.