You might think that kids aren’t old enough to learn about earning and spending money, but you can teach them about making smart financial decisions at an early age. It’s important that they understand how money works, in order to avoid problems later in life when they may get into trouble with credit card or other types of debt. Here are four easy ways to teach children about money so they can exercise good financial judgment and have a brighter future.
Easy Ways To Teach Kids About Money
- Pay kids an allowance that they earn. Many children learn financial responsibility by being provided with a weekly allowance. You can teach them that they have a certain amount to spend on fun items and that this money is gone once they make purchases. Another good lesson is to set aside some of their allowance, so open a savings account for your children. Even at lower interest rates, they can see how interest works.
The allowance you pay your children should be something they earn, not a fund that’s given to them. Assign chores around the house and give each task a certain dollar value.
- Show children how to create and stick to a budget. Budgeting is an important skill to learn, and it basically involves showing kids how to apply the money they earn to things they want or need. Create three categories when you pay your children their allowance:
- Pay for things they want;
- Allow for things they need; and,
- Savings for large purchases in the future.
Of course, as a parent, you’ll be supplying most of a child’s necessities. But it’s a good lesson to show them how much you spend for their food, shelter and clothing. When they’re on their own in a few years, they won’t be shocked by the cost of living.
- Get kids involved with shopping for the household. Shopping for necessities is another good way to teach financial responsibility. In planning your next grocery trip, tell them the amount you have to spend for food and the number of meals you’ll need. They’ll soon find that the sweets and snacks they beg for require money to be reallocated from some other meal. When you head to the store for household items, let them know that toys aren’t included in your budget. They can use the allowance they’ve earned to pay for these items.
- Teach by example. Kids learn primarily through watching, especially at an early age. Develop and stick to responsible habits yourself, and you can be sure these lessons will be absorbed.
Credit Card Debt Lawyer in San Diego
Kids may learn best by example, so it’s difficult to teach some of these lessons if you yourself are in trouble with debt. Fortunately, you have many options for getting out of trouble with creditors, such as by debt consolidation, settlement or other relief. Consult with a credit card debt lawyer in San Diego to hear more on what you can do to get out of debt and improve your financial condition.
Daniel R. Gamez, an attorney focusing exclusively in debt settlement, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in La Jolla, CA. For more information, please contact Daniel Gamez at 858-217-5051, firstname.lastname@example.org or visit gamezlawfirm.com.