How to Teach Your Kids Money Management

By Drum Digital
15 July 2014

By giving them opportunities to make their own decisions, our can become financially savvy.

Kids seem to figure out at an early age that money can get them things. More often than not, it feels like there is always something that your child wants.

At the grocery store, there are treats at the checkout. At the mall, there are kiosks with toy helicopters, gadget cases and enticing cinnamon-flavored treats.

Here are some tips on how to use those experiences to teach your child to spend wisely, have more money and get the most for their money.

1. Set ground rules.

Calculate the cost of an item with your child before going out. If they received R100 for their birthday and want new something new, estimate how much of their gift money that will cost. Try to have them include tax. This allows them to see how far each penny really goes. This teaches the true value of budgeting.

2. Become a savvy shopper. Have you ever wondered how some people are able to afford so much on a limited budget? They might be a bargain hunter that knows when and where to find sales. They could also be secretly shopping resale. Many secondhand shops have treasures that enrich your life without depleting your bank account. If you don’t mind buying used goods, typically at a lower price than new, this approach might be an option for you. 3. Set a foundation when kids are young.

Setting expectations while your child is young is key. By setting an early foundation about savings, spending and the value of money, we can help future generations find themselves in a more sound financial environment than we know today. 

Teaching your kids how to shop and manage money is a process. They won’t be fully fledged financial gurus overnight, but by giving them opportunities to make their own decisions, they will become financially savvy. 

-MONEYUSNEWS.COM

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