Money, Math, and Decisions
The child will have to have money to manage so when they are young they can get an allowance for chores or it can just be given out to them or some combination of the two. Whatever you decide, making sure your child has their own money is the first step toward teaching money management. Keeping their money in a clear jar can help because it gives an easy visual sight of how much they have. And as they become teenagers it may be time to trust them with their own bank account, like a savings account.
When they get this money of their own, they need to decide how to spend it and that is the time to talk about savings. Say they get $5.00 a week but want to buy a toy for $30.00. Let the child know that they need to put aside so much each week to reach the $30.00 to buy the toy later. That is the basis of a savings account.
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Help the child understand that everything costs money
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Show them how to shop smart-compare store prices
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Let them make decisions (and their own mistakes)
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As they grow to teach them about credit cards and managing how the card works, with the interest rate and potential dangers of overspending and having credit problems
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Set a good financial example-children to watch you as their role model in everything you do.
There may be some things that as a member of the family the child just has as part of the family there is required an amount of work that you do not get money for: keeping your room clean, stacking the dishwasher, etc. You can give a bonus for odd jobs and beyond expectations and this will instill the critical linkage between work and money.
My child learning to manage their allowance?
Here is an example of how just 3 clear Mason jars can help manage the child’s money. The best way is $1.00 for every year. Spending jar, savings jar, and a charitable jar. Use a sharpie and they can see their funds.
This is call Budgeting:
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Spending can be 73%
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Savings can be 20%
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Charitable can be 7%
The may have to save up for some of the items they want and that helps to teach management of money, and control.
Money lessons can begin as early as age 3. If you give the child a dollar to spend on anything he wants in the store, such as a snack. They will soon learn the value of money and that it has its limitations.
For earning extra money there are lists of chores a child can do, age-appropriate jobs of course.
How many teenagers have started internet businesses and been very successful?
Discuss your household budget in front of your children.
They can add up everything in the shopping cart.
They will be looking up to you as to how to manage money wisely.
My child learning to manage their allowance?
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