Teach your kids about money

Get started teaching your children the value of money with these tips:

Talk about what money is for. Small kids may think that money grows on trees or comes out of the ATM or wallet and is for buying candies. Discuss with your kids that money is for buying the family’s needs. Tell them that money is earned; parents work so they can earn money. No work, no money. No money, no food and toys.

Pay for needs first. Since money is hard to earn, families should prioritize paying for their needs first like food, clothing, tuition fees, transportation, rent or mortgage, electricity, and the like. Tell your children this is why a budget is necessary, so that needs may be prioritized and met.

Encourage saving. First, tell them why it is important to save – to have some funds in the future when you need them. Second, give them a coin bank where they can put some money away. Third, open a bank account for them so their savings can grow.

Give an allowance. Since people learn more by application than by studying the theory, allow your children to learn money matters the practical way – by giving them an allowance. The purpose of the allowance is to teach kids that they can use their money in two ways: save or spend. And they will find out that if they save, they will have more money tomorrow. By spending, they will also learn to choose items carefully.

Model good behavior. Practice good money habits yourself by saving, not overspending, by paying your bills on time, and buying wisely so they can imbibe these habits too. As they grow, they will bring these good money habits with them. via: GoodHousekeeping

Do have any suggestions on how to teach your child about the value of money? I tried to read Rich Dad Poor Dad book by Robert Kiyosaki. Its a good book but you know, every parent had a different way of teaching their sons/daughters.