Showing posts with label Allowance for our kids. Show all posts
Showing posts with label Allowance for our kids. Show all posts

Monday, September 17, 2012

Teaching Children the Basics of Money

money lessons
Teaching money skills to kids will make them happy.
Kids LOVE money so why not teach them great money skills? I think the more kids understand about the value of money and how to save money the better off they will be when they become adults. 

You can teach your child how to count money just like you teach them to count numbers.  There are a lot of activities for children that teach them how to count money. Learning through games, counting money worksheets and going to the store with you are great ways to learn about money.  Many parents taught their kids about money and how to use it by having them total the cost of groceries with a calculator as they put items in the basket. This helps them with their math skills and helps them grasp the cost of things.


Money Doesn't Grow on Trees

In our household of four we have two spenders and two savers. Our youngest, like me, loves to spend. Our oldest likes to save, like my husband. Our kids were able to see how to spend and how to save, which was valuable. If my husband and I both liked to spend, they might not have learned the value of saving. We tried to teach them at a very young age the famous saying "Money doesn't grow on trees." 

When they were preschoolers the money lessons were very easy. We used piggy banks where they could save their money.  After saving some, we took them to the store and let them buy something they wanted.  Although they didn’t completely understand the concept at that age, at least they knew that saving coins in their banks meant they could get something that they really wanted. As they got older it was easier to explain.

That’s when we started assigning chores and an allowance for our kids was established.  Not only did they apply saving money, but they also had to start making decisions about purchases based on their savings.
 
Learning by Doing
Money skills money lessons
Chore chart to track progress.

Keeping a chore chart and paying kids an allowance at the end of each week lets kids see their progress. Free Behavior Charts is a website where you can print out a free chore chart. They can be customized with popular characters your kids know and love. Goal for It also has free customizable chore charts that you can print, or use on line. Computer savvy kids might love that!

Putting up a visible reminder also adds extra fun and motivation to chores and will gives kids a sense of pride when they can track their accomplishments. Add some colorful magnets and it's even more fun!

For children under ten years, a list of chores and activities like this could work well:

•  Brush teeth
•  Feed pets
•  Homework
•  Make your bed
•  Clean your room

For kids over ten, your list could look something like this:

•  Dishes
•  Clean up after pets
•  Mow lawn
•  Vacuum
•  Wash car

Make learning about money a family activity:

•  Have a "Money" game night and play Monopoly, Pay Day, or my favorite Life. 
•  Make a lemonade stand that the whole family can enjoy.  Let them borrow the money for supplies, and explain that they need to pay back the loan with their earnings. This teaches kids about what a bank does and the importance of paying back a loan.

As our children get older their toys become more expensive. If they understand the value of money they may understand why they can't get that expensive toy right away.  Our girls kept asking us for a Mac laptop and we just kept telling them to save their money.  Finally last month, they had both saved enough money to each buy one. They are very nice computers and my daughters take very good care of them.  I think it is because they know exactly how hard they had to save and work to buy them. They appreciate something they worked hard for and they both have a sense of pride when they tell everyone that they saved up for it all by themselves.  It also made me very proud to know that my girls are responsible and they understand that you have to work hard to get things in life.  Oh, and it was also nice to keep my checkbook in my wallet while they spent some of their hard-earned cash!

Marci Psalmonds
Contributing Writer