Children & Money
Teaching children about money is very important. We now have too many children who feel entitled because their parents failed them and would just hand them whatever they asked for. Or, parents handed them money without teaching how to use it responsibly.
Then there are parents who are seen as stingy and refuse to give their children anything. Good for you. Don't get me wrong, I am not supportive of parents who are so stingy that they deprive their children when they can afford to be more supportive. I am in support of parents who through the act of being frugal teach their children how to use money responsibly.
How early do you start teaching your child about money? When they learn to count. By age five they may not understand what money is about, but you can teach them how to put money into a savings account that is in their name and withdraw money the next time they really want a toy. Doing this they will see how their money grows when they don't spend it so freely.
Once they begin to understand a little more it is time to create a budget which allows them to track the money they receive and the money the spend. It makes it more tangible which hopefully helps them to understand that money is a tool which can lead to a more secure life, not greed or being stingy with their money.
I've created some worksheets to help you out. The first worksheet allows a child to track an allowance. Once they get older or you would like to teach them the next step, help them create a simple budget. By the time they graduate from elementary school they can learn to keep a more sophisticated budget.
