Kids don’t generally have a lot of deep knowledge when it comes to money and how to manage it. What they do know, they’ve probably learned from their parents. But what exactly are they being taught? Here are three basics that all kids should learn about money…
It has to be earned: As your mom probably told you when you were little (and possibly in a snarky tone), “money doesn’t grow on trees.” While that’s only partially true (cash is made of paper and paper is made from trees), money isn’t free. An allowance in exchange for doing chores is a great way to teach kids about earning money.
It has to be saved: An easy way to get your kids to learn how to save is to give them a goal. Whether it’s a video game system or a new squirt gun (do kids still play with squirt guns?) don’t just give your kids whatever they want. Make them save up for the squirt gun (or whatever kids play with these days) and for something more expensive like an XBOX, give them a savings goal and have them pay for at least a good portion of it.
It has to be spent: While it’s important to save your money, it’s also important for kids to understand that money is meant to be spent. You have to spend money in order to live your life. But when learning to spend, they need to learn how to spend wisely. Teach your kids about coupons, sales, and generics. Saving and spending may seem like opposites, but spending wisely is a great way to save.