10 Ways To Teach Kids About Money!

By Kathleen Boucher

Did your parents teach you about money when you were growing up? Did they emphasize the value of having good credit and how to live within your means? Did they teach you how to buy groceries, put money aside for emergencies, and pay yourself first when money was deposited into your account? What are some ways that you can pass this knowledge on to your own kids?

Here are 10 ways to teach kids about money.

  1. Bring your kids to the bank and the ATM when you deposit and withdraw money. Teach them how the banking system works.
  2. Explain to them that the money they earn, when they are employed, is usually electronically deposited into their bank account and that the first thing they should do is pay themselves first, ten percent of the amount deposited. This ten per cent should be set up with their bank to automatically be put into some sort of savings account. The rest of the money is allotted for living expenses. Before they are old enough to be employed they can do jobs around the house for an allowance or deliver papers on a paper route. Once a week bring them to the bank to deposit their savings. Watch their joy expand as their bank account grows.
  3. Talk to them about paying rent or a mortgage, spending money on food, fuel for the car, car payments, TV expenses, electricity, heating etc. Explain the importance of turning off lights when they leave a room. Show them online or on paper how to make a budget.
  4. Teach them to delay instant gratification by saving for the item they want. They will appreciate and value it more when they acquire it.
  5. Teach them what it means by depreciation. Explain that when a new car is driven off of a lot that it instantly depreciates in value. Would it not be more prudent to purchase a second hand car for them to use as their first car. Explain what it means by getting value for their dollar.
  6. Teach them how to cook from scratch. Not only will they eat better but they will save a lot of money by not eating in restaurants.
  7. Teach them how to properly use credit cards. If they have a balance on a credit card they must pay off the credit card in full each month. They may opt to purchase credit cards that they put a limited amount of money on it instead of carrying cash in their pockets.
  8. Teach them to only purchase items they want on sale. Regularly bring them to thrift shops to purchase items that they need. Have them celebrate whenever they buy something 50-75% off the regular price.
  9. Teach them about compound interest! This one strategy may help to make them to millions for their retirement.
  10. Teach them to take courses on how to make the best use of their money. As they get older have them find a mentor that has achieved what they want to achieve financially and have them do what he or she did. Remember, one of the most important skills they can learn is how to handle their own money.

One of my favorite website for kids to learn about money is http://www.zelawelakids.com . It is worth looking into. Your kids will remember your guidance and instruction and as they get older they will be forever grateful.


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