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6 Proven Ways to Teach Your Child About Money Matters
“Money Makes the World Go ‘Round.” It’s debatable whether or not money is the most important thing in life. But it is certainly an aspect of life that we should be accustomed to. If we live any Amish Holmes County Ohio or any other county, we need money to pay our credit card bill, to cover our mortgage, and to buy those chocolate donuts with the little sprinkles on top. Children should also learn how money works, and how to manage it. What methods can parents use to make sure that children learn what they need to know about dollars and sense?
As a parent, you can take several steps to teach your child about money management:
1. Cater to the child’s age group when teaching about money. Consider a child’s age when discussing money matters with him or her. Toddlers and preschoolers can learn about money by doing tasks such as sorting coins. They can also be taught about how money can be used to get “things.”
When children are in 4th or 5th grade, they’re ready to talk about money matters, such as budgeting for an upcoming family outing or vacation. You can talk about opportunity costs, such as paying for a vacation in a place such as Amish Holmes County Ohio, instead of buying a needed washing machine.
2. Teach how to save for a rainy day. After a child starts earning money, open a bank account for any income that he or she earns. When the child becomes four-to-five-years old, help them to open their own account in Amish Homes County Ohio or whatever county you live in. After the child saves a sufficient amount, it’s best to invest the money in ways that will earn more interest, such as cash deposits, stocks, or IRAs for children.
3. Teach children about credit and debt. Today, more and more people in society are falling into serious debt. So it’s important that children realize that indeed, money doesn’t grow on trees. It’s limited, and they should learn how credit cards really work. Games such as Monopoly Jr. teach your kids about purchasing power.
4. Start giving your child an allowance. When children are four-to-five-years-old, give them an allowance for doing various chores around the house, which are appropriate for their age. Inform the child about the parameters for spending the money. Giving your child an allowance while paying for everything want, defeats the purpose of providing an allowance. As soon as you start the allowance, agree on what the child must pay with his or her own money. These things can range from candy to school lunches to video games.
Also, teach about the importance of saving. It’s wise if kids save at least half of their allowance, for a big purchase in the future.
5. Teach your child to be charitable. Explain why you donate to various charities. You could also have the child select his or her own charity to donate to. It will teach children the importance of giving back to people who need help.
6. Find a part-time job for your child. When children are old enough, a part-time job at home (i.e. babysitting, washing cars, delivering newspapers, raking leaves etc.) can allow them to earn some bucks outside the house. Make sure to guide your child about how to spend wisely, and how much he or she should save.
Part of your child’s education should involve learning about money matters. Games such as Monopoly Jr. and allowing them to earn an allowance, help in this process. Your child will learn how to earn, spend, and save money. Who knows? You might be nurturing the next Rockefeller in your home!
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