Your children soak up more than you know. Parents who stress out loud about money, fight between themselves or complain about bills are sending a message heard loud and clear by the little ones in the house. Adults may not be aware of the money lessons being taught with their outbursts, but they are there. In order to counteract any negative lessons taught about money matters, there should be a specific plan involved to teach positive.
Sugar coating finances is not an answer to prevent future adult problems. What these youngsters need is awareness of both problems involving money as well as strategies to solve them. Learning to manage money at a young age will enforce the value of money and support a positive financial future.
In school, young students manipulate fake money to learn values and help solve math problems. It is important for parents to reinforce these lessons by using cash in day to day activities. Watching money used in the real world helps youngsters understand how important it truly is. When children only see plastic used in the stores and see no connection with actual money outside or at home, the concept of money loses impact towards the real world.
*Use cash – When young children see money spent children will begin to see the value.
*Give them an allowance – The early concept of earning money helps to rid any entitlement problems later on.
*Use a complex piggy bank system – Money does not go in one direction. The sooner children learn to categorize their allowance, the better. Whether you purchase a fancy piggy bank, buy a tool box or decorate your own shoe box children need to know that there are separate categories for their earned cash. Create a holding place for savings, spending, donations and investments. Teach your children the difference and that with each payday the money must be split into each one.
*Reinforce money concepts with games. There are many board games that reinforce money skills – counting, saving, and knowing when to spend. Plus it’s a great way to bond with your family.
*Build character through charitable donations – Let a lesson in philanthropy help teach children to spread the wealth in many different formats.
*Personal example – Display positive interactions with money. Think about what is said out loud when children are in ear shot. Don’t hide the fact that there are problems; use these times as a building block to approach solving money problems.
Keep all your talks about money age appropriate for the best teaching results. Your child will develop a greater awareness of money in the real world, develop early stages of responsibility, learn problem solving techniques and establish a positive relationship between money and their own real world experiences..