Money Management

Kids and Money

Kids and Money. When and how should you teach your kids about money? This video series will help you with that question.

In my mind one of the most important skills that you can teach your kids is how to manage their money.

Kids and Money Unfortunately a lot of parents are worried about money themselves and don't have the time or skills to teach them.

So this video series should help you with tips on how to talk to your kids about money and how to teach them how to be responsible with it.

You will learn:

How to get started teaching kids about money
Choices, Budgets and Savings Accounts
How to make Money as kids
How your Kids can set goals and save money

Kids and Money with Marguerita Cheng from the Financial Planning Association

In this video you will learn about Kids and Money and:

It is never too early to teach kids about the value of money and the best way to manage it. Some money education is now being offered in some elementary and secondary schools, but you as their parent, you have a big role in guiding your children to be responsible money-handlers. Here are some tips on what you can do to introduce money management to your kids.

When kids begin to want something, this becomes the go signal for parents to start talking to their children about money. Ask your child what is it that he wants to buy and what does he think he can do to pay for it. Communicating your own thoughts on money matters effectively will be tested during such scenarios. However, this is a great opportunity for you to teach money issues and how to handle them which your child will find useful in the future.

Ask your child to make a Spending Wish List for the whole year. Through this activity, you can introduce lessons on prioritizing needs over wants and delaying gratification.

Provide your child opportunities for hands-on practice. Children are most likely to retain the lessons from first-hand experiences. Allow them to earn money from their own efforts so they get a feel of how easy or difficult it is. Just let your kid learn from the experience.

One of the most important things that you can teach your child is the value of saving. Even at an early age, guide your child to keep his unspent pocket change in a piggybank or an envelope. Let your child know that he doesn't have to spend all his money and that there is a place where he can keep those extra dollars. You can even reward him a certain amount if he gets to fill his piggybank after a year. This will teach him about interest.

Also, allow your kid to make decisions about how he wants to spend his own money. He'll definitely make mistakes like losing some money or spending it on the wrong things. However, the goal there is for him to understand the consequences of his decisions and what he can do about them in the future.

For more information on how to talk to your kids and money, check out the Financial Planning Association's Guide for Parents