Health & Fitness
Teaching Children about Money
Child development expert Pam Dyson of Ballwin writes that children need to understand where money comes from in order to instill good values about responsibility.
People have strong feelings and opinions about money. Children think parents have an unlimited supply. Ever heard these statements from your child? "Just go to the money machine," or "Use your credit card." It's vital that parents take the time to teach their children about money and good money habits. Start teaching when they begin saying, “I want…..”
An allowance is a good first step. Don't tie the allowance into any specific chores. Some chores are required to make the household run smoothly and everyone in the family must help with no pay. Chores for pay are chores that go beyond normal day to day running of the household. If a child doesn’t keep up with his responsibilities and another family member has to do his chores for him than he needs to pay them out of his allowance.
For a young child you might consider giving them $1.00 a week. Break the allowance into coins such as dimes or quarters. This allows them to easily count their money and place it in containers labeled, "SPENDING," "SAVING" and "SHARING."You might request that they put a dime into sharing, two dimes into savings and the rest into spending. For quarters it might be one to share, one to save and two to spend.
Tie saving money to a goal. Find a picture of the item your child wants to buy. Hang the picture where it can be seen so they keep the goal in mind. Kids spend less impulsively when it's their own money. Older kids and teens can benefit from having a savings account at the bank.
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Consider a charitable cause to teach your child the importance of giving. The whole family can participate and when a specific dollar amount is reached you deliver the money to the recipient.
Your children see you spending money or using a credit card. Do they also see you paying the bills, saving, making investments, giving to charity? As a parent you are your child’s number one role model. The best way to teach your children about money is to model and good money habits.
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For more information on Pam Dyson and her services visit www.pamdyson.com