How to Teach Kids About Money – Start With What They Know

How to Teach Kids About Money

How to Teach Kids About MoneyMany a parent has wondered how to teach kids about money. Knowing the basics of money management will help your child to plan ahead and achieve their life goals.

But many times, we’re stumped on how to teach kids about money – let’s face it  – it can feel quite awkward to teach kids about money – it brings up memories of your own childhood and money issues, and it may break your heart to explain to them about why you just can’t afford certain things – especially if it seems like all the other kids have them too.

How to Teach Kids About Money – The Basics

There are actually only a few “big” subjects you need to cover if your how to teach kids about money talks.  Focus on budgeting, saving, shopping and credit cards, and your kids will be well prepared for a stable financial future.

 

How to Teach Kids About Money – The  ‘B” word

  1. Teach the basics of budgeting. How teach kids about money? Start by explaining budgeting in simple terms as a plan for income and expenses. Discuss examples of trade-offs and the concept of needing to earn more or spend less in order not to go over budget – and risk financial consequences. This will serve as a good
  2. Teach Kids About Ordinary Household Expenditures. Everything costs money, but this fact may invisible to kids in a world where tv shows up on demand, groceries are delivered and a plastic card is swiped to get gas.  In other words your kids may may no idea about what it takes just to keep the lights on.  How to teach kids about money – and that everything cost something?  Start with what they know – like the cable tv bill or cell phone bill and let them look at the bill.

Kids get things that cost $100-200 a month.  You’re mortgage payment – while it might keep you up at night – is really to big a concept in the how to teach kids about money talks.  Check out our next post in How to Teach Kids About Money here: http://richmamasecrets.com/1307/teach-kids-money/

 

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