10 ways to teach children to spend money wisely
School age is the perfect time to teach kids about spending because they are learning addition, subtraction, multiplication and division at school.
Children should learn how to spend money wisely at an early age. School age is the perfect time to teach this because this is when they are learning addition, subtraction, multiplication, and division at school. Parents can use this opportunity to teach their children about saving and spending. As they get older, they will learn to make their own decisions about money, such as spending their allowance or helping their parents budget for vacations.
Parents can refer to the 10 tips below.
1. Play spending games
Monopoly and Life are fun ways to teach kids about money. Play your child's favorite board game with them and help them develop their spending skills.
2. Take your child shopping
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Routines like taking your child to the grocery store can also teach them about spending wisely. Tell your child how much money you have and play games with them to buy the items they need within the budget. Give them coupons and let them find items that are on sale. If your child is 9 or 10, you can use a calculator to see how much the family has saved.
3. Give your child pocket money
When children reach school age, they start doing chores to help their families. You can set rewards for chores to help your child develop the habit of managing their own spending.
4. Encourage your children to save
Use a cute piggy bank or Hello Kitty wallet to keep your money. Experts say parents should give their children three different wallets — one for savings, one for spending, and one for donating. Then, together, the whole family can decide how to divide their child’s allowance into the three jars.
5. Deposit money in the bank
Take your child to the bank and set up an account for him or her, then explain to him or her that if you leave money in the bank, it will grow.
6. Teach your children how to talk about money
A child is very curious about how much a house is worth and how much money a person makes each month. These are innocent questions, but children often do not understand the meaning of money. Gently remind your child that it is not appropriate to ask how much money other people make or spend on things.
7. Limit the time your child watches TV
Children are exposed to a constant barrage of advertising in a short period of time. Even adults find it hard to resist, so how can you expect a 5 or 10 year old to be immune to the flashy new toy?
8. Explain the functions of credit cards and ATM cards
Children often mistakenly believe that money comes from an ATM card or that you can only use a credit card to pay for things. Even older children may not fully understand the meaning of credit, so parents need to teach their children the basics of using a card.
9. Be a role model
Children watch their parents' every move. Never lie to your spouse about your spending. And when you make purchases, teach your children that material things don't always bring happiness. Remind them that there are things more valuable than money, like being with your family.
10. Teach your children about generosity
No lesson about money is complete without a discussion about charity. Teach your child to be thoughtful about spending by showing them that there are priceless things that are much more important than money, such as family and love for others.