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  • Feb 22 2014

    Be in the Moment, Plan for the Future

    How to Teach your Kids the Value of Money 


    Being a parent in today’s fickle economy can sometimes put undue strain on a conservative family, especially one with kids who don’t yet understand the value of a dollar. Having to say no about all of their innocent desires can eventually cause a parent to feel like a failure. On the same token, simply saying yes can create a kid who has no idea how the world really works. However, if you teach your kids the value of money they might not spend their time begging you for those unaffordable things in the first place.

    Employing the Golden Ratio

    Teaching your kids the value of money is easy. They do not have to learn the hard way like perhaps you did as an adult. Raising fiscally responsible children who won’t contribute to the lackadaisical state of the economy requires the deeds of active parents who are willing to guide their kids through the ups and downs of money management. Good parents always give their children 100% of what they need to live a safe and healthy life. Better parents do all that as well; but they also only give children 50% of they want, while requiring kids to find creative and resourceful ways of acquiring that other 50%. This “Golden Ratio” is perfect for a parent who wishes to teach their children the value of money, hard work, and responsibility for their own actions.

    Giving an Allowance

    Simply handing your child money is never a good idea. To them, this paints the picture that money just appears magically out of nowhere. Instead, require your child to earn some cash on their own by giving them small chores to complete around the house or at school. Doing so will give your kids a sense of responsibility and accomplishment; plus they won’t be so quick to let that money burn a hole in their pockets when they know they’ll have to work to get some more. If you’re not sure how much money to give your child, check out this cool allowance calculator.

    Learning the Ledger

    Now that your kids literally have an income they will need to learn how to responsibly manage their money. Get them a little notebook and their very own pen, then teach them how to add and subtract deposits and withdrawals. Obviously this will help hone your children’s math skills; but surprisingly, it will also show your kids the value of money. After all, putting cash in is fun for everyone, but pulling money out may leave them unwilling to spend their funds on frivolous things.

    Using Hands-on Budgeting

    Allow your kids to help you with your shopping. This may mean that you’ll need a little extra time while you’re at the store, but it will be worth it in the end. Give your children the opportunity to know the shopping budget; and then ask them to help you find the best deals. They will be adding, subtracting, and making family decisions throughout the store while also gaining a firm understanding and appreciation for the value of a dollar. Giving your children creative outlets through which they can learn about fiscal responsibility is the key to raising conscientious adults who will not compound the problems facing the world economy. Not only that, but it will also provide them with a sense of self-awareness and empowerment that can only come from knowledge and independence. Refusing to teach our kids the value of money may ultimately result in a generation of adults who have no idea how things really work.

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