By Michael Grosvenor “When it comes to teaching kids about money, the sooner the better” says CNN Money. Early understanding of earning and managing money lays down such an important foundation for your child’s future. The more your child understands money the more conservative with it they will be. The concept is that the more they understand the value of the money they earn and the financial responsibilities that come with life, the more they will carefully pay attention to where the money is going.
A good way to teach your children good spending habits is by involving them in yours. Whenever I have a big dollar purchase coming up, I research. Much time is spent comparing features, quality, and of course, prices. Include your kids in this process on some of your purchases. Show them why you choose this over that, how to compare prices and stick to a budget.
An allowance is another great teaching tool, according to the CNN article. This money can show the impact of the choices they make. "Make it clear to your children what kinds of expenditures the money is for, and that they are expected to save some of it.” Don’t forget to give them some freedom to make their own choices. This will help them learn from poor decisions as well as the value and reward of the good choices they make.
Teaching your child financial responsibility at a young age is not about taking away their childhood, but preparing their mindset for adulthood at a time where kids are most receptive to learning. You will be amazed at the impact this has on the rest of their lives!