How do I teach my children to value money?

« Back to Previous Page
0
0
Marked as spam
Posted by Team CentSai (MONEY FORUMS: 9, Answers: 0)
Asked on September 13, 2015 5:28 pm
81 views
0
Private answer
With younger ones, a simple comparison when shopping can be helpful. For example, if they want a $1 candy bar, show them what else $1 could buy. If they have $5 burning a hole in their pocket, convince them to hold on to $1 of it for the future and show them how much they can still buy. Saving a portion of an allowance for a rainy day sets up a good habit for the future. Similar to Peter's "second part," once my daughter hit 13, I put her on a larger monthly allowance that then covered clothing, makeup, entertainment, and gifts for friends. (I still bought proper underwear, athletic shoes/equipment, and basic toiletries.) This taught her to budget and to find bargains, and we never argued about which pair of jeans I would pay for, or how much I would spend on her friend's birthday presents. She used babysitting money to pay for things beyond her allowance. She is all grown up now and to this day she is very responsible with her money.
Marked as spam
Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: October 26, 2015 3:47 pm
0
Private answer

There are two things that I have found to be essential for children to learn about money at home. The first is by example. Children learn more from what they see than what they are told. If they see their parents planning financial decisions and discussing financial trade-offs, then they learn that is part of handling and valuing money. Explaining trade-offs in real time is an important part of this. For example, we don’t get pizza every Friday because we need to save that money for summer vacation. Instead it is maybe pizza once a month and vacation. The second part is for them to have experience with managing money. A great way to do this with teenagers is to give them a reasonable budget for back-to-school clothes and let them decide how to spend it – as long as it gets spent on school clothes and not something else! If they want to go over their budget then they need to pay the difference from their own money.

Marked as spam
Posted by Peter Neeves (MONEY FORUMS: 1, Answers: 59)
Answered: October 14, 2015 6:58 pm
« Back to Previous Page