Give them some cash: Kids should have some cash. Using paper money to learn is far less effective than actual money that earns goods at a store. In my house, I give my son a little cash each week, and he can spend it or save it. I have fun money so he should too. I never pressure him about saving but over time he has realized that saving up will result in a bigger toy. You can also have your child earn some money (see below) but overall I think giving some allowance with no strings attached is smart.

Have them earn their own: I’m actually not a fan of paying for chores. I think kids should do chores because it’s part of what makes a home run smooth – I do them and don’t get paid. But I digress. I also know that kids have almost no way to earn money so I’m not above paying my own little a little something if he goes above and beyond the norm. For example, if he out of the blue cleans his whole bathroom. If kids have to earn their own money, some of the time, they may be more likely to consider each purchase more carefully.

Don’t steal back money back from your kids: Having kids pay for using bad language, hitting someone, or not doing a chore doesn’t really fit the crime, and it just makes money more confusing to kids. The only time money should be going in and out of your kid’s wallet is if they spend it or put it in the bank.

Discuss the bills: Some parents freak about offering info about the household bills to their kids, but kids can handle it. Not only can they handle it, but it’s a good lesson. My son knows that X amount of income is earmarked for rent, water, and food, while X amount is disposable. After he was old enough to grasp this, he quit asking for useless stuff so much and often he’ll say, “After we pay the electricity do we have enough for…?” Also, I wouldn’t be worried about stressing your kids out. Trust me, we’ve had slim months and my son knows it and never worries, he just knows we can’t buy extras so much – that’s reality and a good money lesson for kids.

How are your kids learning about the value of money?

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Post from: Thrifty Mommy

Play with real money. Fake money always confused my son. When I broke out the real deal, he became much more used to the idea of money, and learned to tell coins apart.

Don’t leave the kids at home: Shopping sans kids is a total luxury; trust me I get it. However taking them to the store is one of the best opportunities you have to discuss prices, reductions, cost per pound and more.

Give them a calculator: My son loved calculators before he could really use one properly. Being that he’s just 7 he still can’t use all the functions, but he carries a calculator around with him anyhow. This might seem more like a math tool, and yeah, he likes to ask me math questions, because he can whip them out on a calculator – I’m talking, “Hey mom, what’s 1,456 – 40 + 341″ Um, ok. But he’s thinking about calculations, and that’s a good thing – it’s very money related. All this math Cedar’s been figuring out has helped him to understand what happens when you take 23 cents away from a dollar, stuff like that. I think being involved with numbers is a good thing if you’re trying to teach money skills.

What do you do to teach your kids about money? Games, books, other activities?

You might also like to read: How to totally mess up your kids when it comes to money

Post from: Thrifty Mommy