How to Teach Your Children Money Management 101

Life lessons typically come from your parents, whether it’d be about life, love, or money. While teaching children about money isn’t a priority for some parents, it should be a concern for all. Sending your kids– despite their set cost of living, savings accounts, or any other sort of financial history – out into the world without any money management skills can spell disaster for them in the future. That’s why we, at King’s Cove Apartments, believe that you should do your little ones' service and teach them solid, effective money management skills well before they head off to college, or begin working a full-time job.

Start with physical currency, then move on to banks.

If your child is younger, physical currency, like dollar bills and coins, is a great place to start with Money Management 101. The ability to hold physical money is a tangible way to teach them about the basics of earning and spending. As children get older – around the ages of 9 to 12 – they are more capable of learning why banks play an important part in the mix, ie. loans, credit, interest, etc.

Teach them about the importance of saving & spending.

Whether allowances are tied to household chores is usually up to the individual family and their financial situation. It can be helpful to exchange a flat allowance in exchange for basic chores, such as making beds, taking out the garbage, or doing the dishes. Giving children a way to earn some sort of cash spend will teach them that money comes with a choice –in what you save and what you spend.

Help them to comparison and/or bargain shop.

Is the name brand really better than store-bought? Where can you find this, that, and the other for the lowest price? Children need to learn about the answers to these ever-important questions to help them decide where the penny pinching is worth it. They must come to the basic understanding that saving in one area of your life allows you to splurge (or save) in another!

Encourage them to be generous with their community.

Sure, earning, spending, and saving are all top-notch lessons when it comes to Money Management 101, but they also need the importance of helping those less fortunate. Take a passion of your child’s, whether it’d be animals or their grandparents, and encourage them to invest in their money (or time) at the local animal shelter, retirement home, or another charitable organization or institution.

Motivate older kids to earn extra money.

If your child is no longer a kid and closer to a young adult, then you’ll want to consider giving them a means to earn extra money outside basic chores. Here are some suggestions: doing yard work in the summer, pet sitting or dog walking, tutoring other students, babysitting younger kids in the neighborhood, or doing housework for elderly or infirm neighbors.

Expand your mind with new ideas! No matter the topic, King’s Cove Apartments in Kingwood, Texas is committed to informing you of the information that you want to know.

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