When should you start introducing money management skills to young people? The answer is simply - as soon as they understand what money is. Even if your child is a preschooler it's not to soon to make them money wise. Here are some ideas to get you started:
- Don't buy your child everything they ask for - even if you can. Help your child learn the cost of the things they want. Empty his/her piggy bank and count out the coins explaining as you go how long it will take to earn the money needed for the purchase.
- Make an agreement with an older child to save a percentage of any monies that s/he earns or receives and put this money in a separate account that s/he agrees not to take money out of. Try to find a higher interest account and when the statements come show your child how the savings are growing.
- Make your older children pay you back for their purchases (with interest if you want to be realistic.)
Sometimes learning to manage money can be stressful for both the child (who maybe can't have everything s/he wants when s/he wants) but also the parent who will be saying "no" more often. Stick to your guns and spend more time discussing with your child the good and bad aspects of their purchases. Don't tell them they can't make the purchase because its "stupid" but help them to understand your point of view and steer them in the right direction.
Remember your kids want their independence and they want to own "things". Be considerate of this and allow them to make "minor" mistakes. Those lessons learned through experience are often the ones that are remembered.
