It’s Never Too Soon to Teach Your Children How to Manage Money

Being a parent is oftentimes challenging and can be overwhelming, especially if you are a new parent. The last topic on your mind while trying to juggle all your responsibilities is probably money management. However, learning how to manage money is a very important life skill that you can introduce to your children in bite-sized little lessons and by teaching by example. Try using routine activities like food shopping, paying bills, and buying a new car as teaching moments. For example:

• When food shopping show your children how you use coupons and price shop to save money

• If some of  your bills like your utility bill is high, you can discuss with your children how important it is to turn off the lights or use the ceiling fan instead of the air conditioning to reduce the bill

• If your old car is not running and you have already spent a lot of money on repairs, you can discuss your options either with your children or in front of them so they can hear the conversation. Rather than spend more money on repairs, you can get cash for junk cars in NJ. 

Give Your Children an Allowance

It is easier to learn something when you have skin in the game. For smaller children, giving them an allowance will give them practical experience on how to manage their money. It is not a good idea to just give them money for nothing because that is not teaching them the value of money. Instead, tie their allowance to chores they are required to do. Make sure the chores are age-specific and if they don’t complete their chores, they don’t get paid. When your children reach the teenage years, open a bank account with them and teach them how to manage it.

Discuss Mistakes You Have Made

As parents, we might not like to admit that we have made mistakes, including financial errors in judgment. However, it is important in general for children to understand that no one is perfect, including their parents. In addition, your mistake can be a teaching moment for your child so that they won’t make the same mistake you did.

Meet Them Half Way

If your child really wants to buy something, teach them how to save their money. For young children, they might want to save for a new toy. Teenagers might want to save for a much larger purchase like a car. In either case, teach them how to put away a little bit of money each week. Your goal is for them to successfully save enough money for something they really want. A good option that many parents of teenagers do is to discuss with them how you will match the amount of money they save so they can get what they want faster. This is especially helpful when the cost is very high and it would take a very long time for them to save enough money to buy what they want. After all, you don’t want them to fail. You are trying to teach them how to be successful.

Play Board Games

If you want to make learning how to manage money fun, try playing board games as a family. Some great games to play are:

• Pop to the Shops is a board game ideal for ages 5-9. Players use fake coins to buy grocery items from different shops around the board. If they don’t have enough money to buy what they want, they will have to choose a cheaper item. When other players visit their shops, they have to be able to give the shoppers the right change.

• Monopoly is an old-time classic board game and favorite of even many adults. Not only does it teach children how to count money when they buy and sell properties, collect rent, and build houses, it also teaches them how to make good decisions. As many of us remember, Monopoly is often a really long but fun game and acts as an introduction for older children to learn about investments and long-term payoffs.  

• The Game of Life gives children a glimpse into life as an adult such as going to college, raising a family, working, buying a home, and retiring.It also teaches children that there is a difference between what they want and what they actually need.

Teaching your children from an early age the importance of managing money will help them when they become adults. As your children get a little older and start to get an allowance, showing them how they can have control over what they spend is a valuable life lesson.