Saving a Buck: Teaching kids about money
The beginning of school is followed by the busy holiday season, a time when your kids likely see you spending a lot of money.
Experts said as you hand over the cash or swipe your card, make sure you give your kids an understanding of where your hard-earned cash comes from and how they too should spend their money.
Erin Engelke is a mom of three.
She and her husband are both working parents who want to teach their kids the value of a dollar.
She said, “One thing that’s really important to my husband and I is to teach our children that money is to be earned.”
It’s a lesson CPA Christy Sughru said we should all teach our kids.
She said, “If you aren’t going to learn it at home or at school, then I don’t see how a child can learn it.”
Teaching kids that money is earned and not just handed out is one of the most important lessons.
Age-appropriate chores are a great way for them to learn that lesson and earn some money.
Engelke said, “My son’s job is to unload the dishwasher and vaccuum the kitchen and my daughter makes her bed.”
Sughru said, “Teach them to work for something, that they aren’t entitled to it.”
When they’re old enough to get a job, consider a checking account, one you can monitor.
Help them track where their money goes and understand what it means to really budget.
Sughru said, “It’s a great responsibility but it’s how we live, how we survive.”
The basics of budgeting can be taught early.
Even elementary age kids can separate their money into categories for saving and for spending on that toy they really want.
The White House recently started a new site providing advice for teaching your kids about money, http://www.moneyasyougrow.org/.
The advice is broken down into age-appropriate sections.