For a young child, use graphic methods such as envelopes or jars to divide money for spending, saving and giving. A weekly or monthly allowance is a good way to achieve this give kids earnings in cash, so they have a tangible experience of the pile of bills shrinking and disappearing.īe clear about what the allowance is expected to cover. The only way for kids to learn about money is to have their own to use.
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(See our article on 10 things college students should learn about money.) 2.
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Those lessons should get more sophisticated as children age, with the goal of sending your kids off to college able to balance a checkbook (or its digital equivalent), pay bills on time and make sure a paycheck lasts until the next one. And ultimately they need to learn that the money you have cannot be spent entirely on fun things for yourself. Money lessons for younger children can be simple, covering such issues as “if you spend all your birthday money today on candy, you won’t have any left tomorrow for a toy.” The goal is to make them understand that money is finite and must be rationed according to priorities. “My 3-year-old granddaughter, my 6-year-old grandson – they know money.” “I think it’s possible to start pretty early,” says Eleanor Blayney, consumer advocate for the Certified Financial Planner Board of Standards and a financial planner in the District of Columbia. Here are nine ways to teach your children to budget.