My younger sister can’t save money for anything. If she gets $20, she goes out and gets her nails done, without any idea how she will pay for the upkeep. Watching her made me realize that I needed to teach my children about money.
Give your children an allowance that is age appropriate. For our kids, they get half of their age in allowance. So, on their birthday, they always get a 50 cent raise. We provide chores during the summer and expect them to help out when needed during the school year. Set some rules for earning the allowance and an amount for your children.
Now that they are earning some money, teach them about saving it. Many banks have savings accounts for children. Help them decide how much money they want to have to spend and how much to put away. Make them a chart that keeps track of their money so they can watch it grow.
Let them spend some of it and be silly. Part of the fun of having money is spending it. I had a friend who would not allow their child to spend any of his money. He had over $100 in the bank but couldn’t use it. Letting your kids spend their money teaches them the value of things and how to use money wisely. Make sure your kids only spend what they have. Don’t loan money against the allowance they will receive. Our boss doesn’t give a paycheck advance, kids need to learn this too.
Teaching your kids about money will provide them a valuable tool for when they are older and get their first job. Make spending and saving money a success for them.