Are very nice Reasons to teach your children about money. For one, you don’t want to repeat yourself to your children Financial mistakes. Also, if you raise financially smart adults, chances are they won’t ask for money from you someday. By helping them, you are helping yourself.
Teaching your children about money is also the right thing to do.
Whatever your motivations, it can be a challenge to find out how to impart your hard-earned financial knowledge. For example, at what age do you start? How deep should we go into weeds? Is it better to tell them how to manage money than to tell them?
How to teach your children about money
As you can imagine, there are many approaches to teach your child about money. Some parents believe in allowances; Not others. Some companies market debit cards to elementary school children, and some parents think that there is a crazy age of learning about debit cards, no matter how many parental controls are established.
What matters, what do you think. But here are some general rules of the road:
Talk to your children about money. Michele Crass, founder of Capital Intelligence Associates in Santa Monica, California, says that many experts say: “Parents can teach their children good financial habits.
Kruse acknowledges that everyone makes different financial decisions, but you should at least discuss your thinking Expenses and savings With my children.
“Most Americans have the option of spending their money,” he says. “Some people choose cars and homes. Some choose experiences. Going to options with your children helps them understand your values and it is full of life choices.”
Consider an allowance. There are good arguments for no Give your child an allowance. Some experts say that children should not get paid for doing the expected work around the house – and for being part of the family. But as Krus points out, “giving a small allowance to a child also helps children make choices with their own money.”
Continue discussing finances with your child and the last teenager. Do not make it a one-to-one conversation. “Where most parents stop is working with children on how well those choices turned out and what choices they want to make in the future,” Krause says. “Between cultures, there are stories about great wealth being lost over three generations. The first generation works hard and lives on tight budgets to make money. The second generation sees hard work and sacrifice and understands that the alternatives Need to think about it. Money. The third generation has never heard the fight at the dining table about money and tried to blow everything away, not realizing its value. “
Involve your child in charitable giving. It can be something that you do in church, or you and your child can raise money for a good cause.
“Engaging your children in thoughtful philanthropy is a way to share your family’s values and give back to your community and teach your community,” says Ross Cohen, a Certified Financial Planner and Wealth Advisor at Bartlett VAT Management. With offices in Cincinnati and Chicago.
Ideas for earning money for your children right away
Another way for children to learn a lot about money is to earn it. We will abandon the traditional lemonade stand idea because there is still an epidemic and all. Depending on the age of your child, you may need to help with some of these ideas.
- give birth to child.
- Yard work for neighbor.
- Sit home and / or pet for a neighbors holiday.
- Sell crafts on a website, such as Etsy.
- Organize a yard or garage sale.
- Shovel for neighbors in winter.
- Do extra work for money.
- Wash neighbors’ cars.
- Collect recycle.
- To tuition.
Ideas for teaching your child about money by age group
Obviously, you are going to teach a 5-year-old child with a different money than a 15-year-old. Here are some thoughts.
For younger children. Your 3-year-old does not need to get a job, but does not need to be oblivious to money.
Melanie Hopkins, founder of the financial consulting firm Finance Friend in Brooklyn, has a great idea for parents of 3 or 2-year-olds.
“When they receive a toy at the bakery shop or at the toy store, hand them the cashier a cash or credit card,” Hopkins says. “It helps them understand that money is a transaction, which is a core concept that you can build when you grow up.”
For primary school children. Sports are a fun way to provide financial lessons. “As strange as it may sound, Monopoly is a great game to play with children to introduce money concepts,” says Aaron Leake, founder of ECL Private Wealth Management in Rockford, Illinois.
He says older elementary school children can handle more complex financial transactions, as long as you’re moving on the path, of course, and monitoring their finances.
“Earlier children understand money better,” Leake says. “My daughter is 12 years old and has her own debit card, which is transferred to me from her for donations. She also has her own investment account where we discuss and talk about how investments work. Huh.”
for teenagers. Leak is for all teenagers Learning about investment. And at some point, if you think your child should get a part-time job, it’s not a bad idea, many financial experts say.
“As a young teen, you can babysit, play lawn or referee games. As they get older, there are opportunities to work in retail or hospitality,” says Cohen.
Should your child have a debit card?
It depends on you, but Craig Everett, Professor of Finance Pepperdine Graziadio Business School, Also don’t think your college student should have a credit card – and there are some interesting arguments.
“Everett says,” I do not recommend credit cards for people under 25 years old. The frontal lobe, which allows people to associate current verbs with long-term consequences, is not fully developed. “” Credit cards allow for current expenses that can have significant negative future effects, so incomplete brain development can have disastrous financial consequences for people who are just starting their adult lives. “
He suggests parents encourage their adult children to use Debit cards By age 25, Everett admits that your adult children are unlikely to follow your advice, but “it can’t hurt to try,” he says.
For younger children, especially if they are under 8 years old, Everett is not crazy about the idea of having a debit card with him.
“In my experience, debit cards are not very useful in teaching young children about money because the card is only an abstraction and is similar in looking at how much money is in the account. Using physical cash to teach children more. Is effective. Value for money, “Everett says. “For children under 8 years old, coins are most effective due to the size and weight difference. Younger children really enjoy coin counting and exchanging activities.”
With any luck, if you really teach your children well about money, then someday your child will make green stuff and be able to support you in your old age. See what we told you? By helping them, you are helping yourself.