Financial education is best when it starts at an early age. Teaching your children the value of money and saving while they’re young gives them a better chance of maintaining those good habits throughout adolescence and adulthood.
Here are some ways to educate your children about money:
- Help your children understand the difference between what they want and what they need. Understanding the difference will make them better able to make wise spending decisions later in life.
- Encourage them to develop specific financial goals. This may be money for a new toy or a trip to their favorite ice cream store. Saving for a particular goal teaches children the value of a dollar and responsibility.
- Introduce children to the value of saving versus spending. You may want to do this by offering to match a certain percentage of what they’re saving and liken this to earning interest at a financial institution.
- Open a savings account for them. Have them make regular deposits with you and show them how much their balance has grown. Having their own account at a financial institution like Mom and Dad will make them excited about saving.
Try these fun activities with your children to help them learn about money:
http://www.federalreserveeducation.org/fed101/Games/
http://www.usmint.gov/kids/games/
http://www.moneyfactory.gov/kids/tgames.html
http://www.publicdebt.treas.gov/sav/savkids.htm