It is important to teach children about money from an early age. There are all kinds of classes available for kids in school, but they haven’t yet included finance in the curriculum for kids of any age. By teaching children the value of the dollar, you can teach them responsibility and save them a lot of trouble as they begin to manage their own finances.
One of the ways you can begin to show children the value of the dollar is by starting an assignment. Prepare a homework chart and explain that they can earn an allowance by completing their homework each week. Call the end of the week “payday” so they have something to look forward to.
Chores can be anything from making your bed to cleaning your room. Give them other opportunities to earn cash, too. They can help carry groceries or feed family pets. Another idea is to involve them in the laundry.
At the end of the week, total the amount they have earned. Then explain the value of the savings and encourage them to set aside 10% of their weekly earnings for a rainy day. Help them plan big purchases so they have a goal and try to reach it.
Another way to help them learn to save their allowance is to match their savings. Many parents will “match” what the child puts into savings in order to redouble their efforts. This is a very good idea when it comes to teaching a young child that money accumulates over time.
Don’t feel like it’s too early to teach kids about money. As soon as they are old enough to make their beds or pick up toys, they will be old enough to start earning and saving. By teaching these lessons to children, you will help them understand the importance of hard work. It also teaches them to achieve their goals. When a child achieves what he set out to do, he will instill self-confidence and an attitude of being able to do it.