Teaching Your Child About Money
Even young children understand that people use money to buy things, and children today are targeted by sophisticated marketing campaigns almost from birth. Therefore, you should help your child develop a healthy relationship to money by involving him or her in money matters as early as possible.
Here are a few ways you can teach your child about money:
- Have your child with you when you cash your paycheck, pay bills, and make deposits to your savings account. Compare prices of favorite foods at the grocery store. Involve children in some family purchase decisions, such as whether to buy a bigger TV today or save the money for a trip next summer.
- Give your child a weekly allowance that he or she can manage independently. Provide enough for necessary expenditures, such as school lunches, and some discretionary funds. Discuss different ways of using the money together.
- Give your child opportunities to earn money for special events or personal wishes. Open a savings account for your child so he or she can see how interest makes it grow.
- Show your child the importance of helping others by giving to charities.
Children live what they learn, and teaching your children the fundamentals of money now is the first step toward a financially secure future.