Patience

How to teach your Kids about Money based on Age Every parent raise their kids to be better than them. They strive to provide better living conditions than they grew up in. Well, much as the parents are caring, very few teaches their kids money related concepts: saving, earning, money management etc. No matter the excuse you might be having as a parent, enlightening your kids on finances is vital following the economic climate we are living in today. There are bills, credits, students` loan etc. No more ‘’It`s too early…’’. In fact as kids grow, more and more money thoughts flood their minds. Some prefer making money at an early age for various reasons: charity, gift cards and buying expensive items. The truth is: whether or not you teach them about money, they will still learn from their surroundings. So, don`t risk having your kids gather the wrong information about finances, take dominance and teach them enthusiastically following these guidelines on how to teach your kid about money based on age: First: Kids in preschool kindergarten For kids under this category, start with the basics: names of the various coins (dime, nickel etc.) and their identification. For a better understanding play money related games e.g. a shop or grocery store with them. Pay them allowances for small activities such as: arranging their shoes, organizing their books, coloring pictures etc. Much as the kid may end up misplacing the penny, it`s a good progress. Teach them the three jars method. Once you have given them money, show them how to divide it into saving, charity and spending. This may prove hard at first but it`s a powerful concept which they will internalize with time. You can also have your child accompany you to a movie store or a library, rent a movie or a book and allow them be in charge of returning it. Second: Early elementary kids You can open a bank account for kids under this category. Have them accompany you to the bank or credit union as you do so. Encourage them to save 1/3 of their daily take to their accounts. Advance and explain to them stuffs like receipts. Have your child accompany you to the shop and help you compare various prices, buy some of the items they recommend based on price as it will help boost their morale. At this stage, you can educate them on budgets. Get them to understand the need to buy what is important avoiding money wastage. More on charity, involve your kid in donations. Have them contribute their charity savings towards a needy child in their class, an elderly person in the neighborhood etc. Third: Middle to late elementary kids For kids under this category, encourage them to work extra house chores e.g. cleaning the garage to get allowances. Always remind them to save their earning. Encourage them to compare prices on magazines and in catalogs. Lend them money at a small interest rate to educate them on loan concepts. At this stage, you can encourage them save for the purpose of buying an expensive item. For them to learn more on saving, allow them to reach their target savings _toward purchase_ independently. Fourth: Early teenage kids At these stage teach them on credit, debit cards and cash. Help them understand when to use credits, benefits and demerits. Have them research more on checking and other saving accounts. Encourage them to fill their checkbooks on daily bases and help them balance them at the end of the month. Visuals are more informing than words, cut down their exposure to ads on luxurious items by minimizing TV watching duration and internet access. This will help you convey money management concept easily. Most importantly at this stage, tell them the reality of your financial status. Don`t just cut back vacations, reduce the number of gifts; explain it to them. Fifth: middle and late teenage kids At this stage, encourage them to have an actual job and help them with their taxes. Get them to research on long term financial problems and situations e.g. buying a mortgage. Equip them with more skills by allowing them to go for shopping on their own. For credibility purposes, have them bring home receipts issued and balance if any. Teach them to be responsible by having them buy expensive gifts, pay part of their car, credit and other insurances. Teach them on how to shop wisely e.g. buying in bulk to increase savings. As a parent it`s good to appreciate that, throughout the journey, mistakes are bound to happen. Be quick to correct and advise accordingly. Keep it in mind that it`s better they make mistake now, than do the same later in life _a mistake that may cost them a fortune. Take pride in it, you can even consider rewarding yourself after every successful lesson. In conclusion, money concepts are inescapable regardless of the age. Don`t leave your kid to discover finance related issues on their own. Be their guide each step of the way. As you teach them following the guidelines outlined above, remember to be a good role model too. Action speak louder than words always true. The lessons don`t have to be dull, be creative and make them fun and memorable.