By: Krystle Crossman
Teaching your child about finances and how to be responsible with them is very important and something that should be started as early as possible. Children need to learn the value of money so that down the line they are more responsible with it and are less likely to go into serious debt later down the road. Show them different ways that you are responsible with your money so that they can see it in action.
When children are old enough to understand numbers and how big certain numbers are, have them sit down with you while you are figuring out the household budget. Show them all of the different expenses that you have and how much each costs per month. They will see that there are a lot of big numbers and will learn that life is not cheap. The older they get the more they will understand.
Open a bank account for your child but don’t let them have access to it. Put some money in every week if they do their chores and do well in school. You can allow them to deposit the money in the account every week and balance their checkbook so that they can see how debits and credits work on the account. They will also be able to see that the sum of their bank account rising. It is exciting for a child to have money so to see the account grow every week is great for them. If you don’t wish for them to know that they have an account you can deposit money yourself and then when the time is right hand over the debit card and checkbook and show them how to use it responsibly.
Unfortunately not matter how much you teach them some children will still spend money like it grows on trees. The earlier that you teach them about saving money and spending it wisely the better of a chance you give them to be financially set on their own.