Teach Children about Money
If your child is old enough to intelligibly ask you to buy something while visiting the supermarket, it is time to start teaching them about making and saving money.
How to Make Money Teaching your child how to be financially responsible needs to start with a discussion about how to make money. You cannot save what you do not have. If your son or daughter is still young, try giving them a small amount of money to perform specific household chores. Make a chart listing the chores and the set amount of payment and post it on the refrigerator.
As your child grows, try increasing the amount of money you give them for harder chores around the house. Once they are old enough, you can begin to encourage some self-employment options if your child seems interested. For example, if your neighbor needs help mowing the lawn or washing a car, let your child ask to do the task in return for a small fee. Other children may develop more creative ways to make money, such as making and selling friendship bracelets or baked goods. Remember to pay your child promptly so they learn hard work is valued.
How to Save Money Once your child begins to earn money, even a small amount, begin to emphasize the value of saving for a rainy day. Open a savings account for your child and make weekly trips to deposit at least 10 percent of their earnings. An older child may enjoy saving with a specific goal in mind. If your daughter, for example, has been eyeing that new bicycle, help her to shop around for the best price using store ads or the internet. Once you find the best price, encourage her to save up money towards purchasing the bike. Try using a chart to show the amount saved versus the amount needed to buy the bike.
How to Share Money A child that knows how to save money is also old enough to share it. Help your child to research charities. Once they find one that catches their interest, work with them to develop a set amount to give to this organization. It is never too early to start teaching your child about the value of money. By teaching your children these lessons early, you could be encouraging the development of the next big entrepreneur…or at least a financially responsible adult.
This post was repurposed for distribution. To read more articles just like this from Jonah Engler, visit his main website at JonahEngler.com.