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26 Comments
That is a great idea to start using cash again, so the kids can see how money exchange works in a tangible sense.
This month my son (4) wanted to do a food drive after reading a book about the topic. So we are paying him in change to do chores, then doubling his contributions toward purchasing food for the drive. It’s a little more work to keep track of it all, but it’s a win for all involved.
Kalie @ Pretend to Be Poor recently posted…Fuel Your Way to FIRE with Free Firewood
We’re just about ready to get started with an allowance for our two kids (they’re 6 and 4). The amount will be pretty modest, but we know it will be a good way to teach them about getting money, and we’ll work with them to make sure they understand the importance and benefits of saving and looking for deals. It is true that they learn the most, though, from watching their parents money habits.
Money Beagle recently posted…7 Reasons My Co-Workers Might Consider Me Peculiar
Yes, kids definitely learn best from their parents! An allowance is a great way to teach your kids the principles of saving, giving, and spending. I’ll admit that we have sort of fallen off track with giving our five year old her monthly allowance, but I think I’m going to start a chore/responsibility chart to help us with reinforcements. Thank you for stopping by and reading!
One important lesson I teach my daughter is that money can help others. Part of her allowance has to go to a “giveaway jar.” At Christmas, she’ll decide how it will be used: Angel Tree, food bank, or Coats for Kids.
Emily @ JohnJaneDoe recently posted…Final Thoughts: The Jividens Wrap Up Their 31 Days of Living Well and Spending Zero Challenge
This is an awesome idea and one I need to implement. My daughter is still in the early ages of grasping all that money can be used for, but this is a very important principle to teach children as early as possible. Not only can you give away items, but monetary gifts are equally important. Thanks for sharing your insight and reading today!
Love this! My dad taught me a lot about money and I plan on doing the same with my future children.
Michelle recently posted…Make Money Selling Books – An Easy Side Hustle For Anyone
It makes me happy to hear about parents who have taught their children about money. I learned about money growing up, but unfortunately, the lessons weren’t all that great. I plan to change the trend in my family and make sure my children receive top notch financial literacy. I commend you for wanting to do the same!
I just introduced my daughter to the concept of interest. She received several hundred dollars from generous relatives for her 6th birthday, and wanted to put it all into her piggy bank. I explained to her that some of it is designated by the givers as college savings (529 account), some goes into her bank account, and the small bills go in her piggy bank. I told her that the bank pays her a little money every month she keeps her money there. Thankfully, she was very excited about this concept.
I’m very much in the habit of using a credit card, but it’s a good point that that seems less real to kids. I’ll have to incorporate more cash spending when she’s with me.
Amy @ DebtGal recently posted…November 1 Debt Totals & Side Hustle Income
Hey Amy, that is an amazing idea! My daughter likes to run to her piggy bank as well! It’s amazing what our kids pick up on if we just slow down enough to explain things to them in terms they will understand. I’m happy your daughter is excited about earning a little passive change;)
Great tips and I definitely do my best to teach my son. Although he is still five, he already picks up financial knowledge and frugal tips pretty fast. I recommend start teaching as early as possible.
Reelika @Financially Wise On Heels recently posted…Ultimate Guide to Saving Money on Holiday Dinner
5 years of age is definitely a good age to start. I’m excited about moving forward…we just brought the Monopoly Junior game for one of her Christmas presents so I’m excited to see how that unfolds.
Latoya S recently posted…4 Ways I Achieve Work Life Balance Working From Home
I think my mom’s tactic was smart. I had to save up half of any big thing I wanted (outside of Christmas gifts). It taught me the value of a dollar — and how products might not live up to the hype.
Abigail @ipickuppennies recently posted…The unique gift for the geek in your life
This is a good idea! Saving up and having a price match from parents is always helpful in helping kids understand concepts such as employer contributions, interest, etc.
I remember the time when my mother let me have my own savings account. It was the start of how I learned savings and managing money because I felt I had to be responsible with regard to money management. I am glad that she did let me do this as I learned so much and have been reaping its results.
Jayson recently posted…Investing in Gold and/or Silver in Australia
These are great lessons and taking out the actual money, not just the “money card” is an important part of that. I had to laugh when you wrote “play imaginary restaurant” because it reminded me of a story my wife told me. When she was a young girl, she and her friend opened their own “restaurant” on her parents’ porch. These young “entrepreneurs” were selling real sandwiches and food from the kitchen and charging only a nickel per meal to their friends. Mom and Dad weren’t too happy to find their kitchen stripped of food and a handful of nickels for their trouble, but it was certainly a learning opportunity.
Gary @ Super Saving Tips recently posted…Can You Really Trust Online User Reviews?
That’s an amazing story! The mind of young entrepreneurs – so innocent. Thanks so much for sharing.
Latoya S recently posted…4 Ways I Achieve Work Life Balance Working From Home
My parents never taught me or my sister about money. Thankfully, I haven’t done anything too crazy with mine (low credit card debt & student loans remain). However, I think those lessons early on would have been amazing. Who knows? It might have even helped them improve their own financial situations as they were teaching us, but alas, it never happened. Good on you for starting early with your young one!
K @ One More BROKE TWENTY-SOMETHING recently posted…Financially Savvy Saturdays #115
Thank you, K! And yes, I agree, those lessons may have paid great dividends.
Latoya S recently posted…4 Ways I Achieve Work Life Balance Working From Home
I never even thought of how kids much view the “money card.” You’re so right about making sure you use actual currency so they know what it is!
Mel recently posted…Financially Savvy Saturdays #115
Yes, I’m working really hard to reverse this view so she doesn’t grow up with the conception that any time you purchase something, all you need to do is swipe. There’s way more to it than that!
Latoya S recently posted…4 Ways I Achieve Work Life Balance Working From Home
Now when I think about it, I wished I saved a lot when I was young, I mean even cents and dollars count nowadays. Saving money is really important and I want my kids to learn that too, even at such a young age as this thing will benefit them a lot when they grow up. I’m not the kind of parent who buys them toys (I want my kids to play physically and actively) but I’m planning on buying them play money and coins just to teach them about money and saving up 🙂