Eighteen Ways to Help Kids Manage Money

1. As soon as a child learns to count introduce them to money. Through repetition and observation they will learn.

2. Tell your children about your money values and how you save it, make it grow and spend it wisely.

3. Teach children to learn the difference between needs and wants. This will help them to make good spending decisions in the future.

4. Setting goals is one of the best ways to help children learn the value of money. If the children want something have them save their money to achieve the goal of receiving what they want. Goal setting also works for good grades and helps children to become responsible for their futures.

5. Teach your children to save money rather than spend. Explain and demonstrate how you can earn interest income on savings. Consider paying the children interest on money they have saved at home. Teach the children to calculate interest so they can see how fast money accumulates. Show them that good credit relies on regular successful savings. You can offer to match what your children save on their own.

6. If you give your children allowance or income, give it to them in bills that encourage savings. Rather than a five dollar bill, give five one dollar bills for example.

7. Introduce children to a U.S. Savings Bonds. They can be given as a gift and will not be immediately spent, but will reinforce saving and give them something towards their college education.

8. Take your children with you when you open a savings account for them. Begin a regular savings habit early. If they want to withdraw, don't discourage them otherwise they won't want to save.

9. Keep records of all money saved, invested and spent to help your children learn. Encourage children to save receipts for all items they purchase.

10. When a child goes to the grocery store for their first spending experience teach them how to spend smart. Look for items that are on sale ahead of time and show them how to plan a meal and use leftovers. Also, show them how to shop by the unit price.

11. Take children with you to stores and show them how to plan purchases in advance and make price comparisons. Show them how to check for value, quality and warranty.

12. Allow children to make spending decisions both good and bad and then have them discuss the pros and cons of their decisions. Teach them to use common sense by researching and waiting for the right time.

13. Teach children how to evaluate commercial ads. Remind them that something that sounds too good probably isn't true.

14. Look into joining a credit union. They have good youth programs that will help you teach your children. Explain the benefits of a credit union to your child.

15. Teach your children about the dangers of borrowing and paying interest. Charge interest on small loans you give them so they will learn.

16. If you use a credit card at a restaurant teach the children how to verify charges, calculate the tip and take safeguards against fraud. Explain how you will pay for the charges later.

17. Even when entering college be cautious when giving a credit card to children. Many students don't use credit cards just for emergencies.

18. Use a calendar to establish a regular discussion of family finances. Answer any questions children have at this time.

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